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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, 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 March 31, 2003          



OR


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

Commission file number 0-7949




BANCWEST CORPORATION

(Exact name of registrant as specified in its charter)


|                         |  |  |  |                    
|------------------------ |  |  |  | -------------------
|Delaware                 |  |  |  | 99-0156159         
|(State of incorporation) |  |  |  | (I.R.S. Employer   
|                         |  |  |  | Identification No.)

|                                         |  |           
|---------------------------------------- |  | ----------
|999 Bishop Street, Honolulu, Hawaii      |  | 96813     
|(Address of principal executive offices) |  | (Zip Code)

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

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


None




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

None




(Title of class)

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

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

As of April 30, 2003 the number of outstanding shares of each of the issuers classes of
common stock (all of which were beneficially owned by BNP Paribas) was:

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



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TABLE OF CONTENTS



|                              |                                                                                               |                                                                                     |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1.  Financial Statements                                                                
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF INCOME                                                  
|                              |                                                                                               | CONSOLIDATED BALANCE SHEETS                                                        
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS                                              
|                              |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                         
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                              | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|                              | Item 4. Controls and Procedures                                                              
|PART II. OTHER INFORMATION   
|                              | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURE                    
|CERTIFICATION                
|EXHIBIT INDEX                
|EXHIBIT 12                   



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BANCWEST CORPORATION

FORM 10-QMarch 31, 2003

INDEX

|               |  |                                                                                                                                        |    |      |    | 
|-------------- |  | -------------------------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|               |  |                                                                                                                                        |    | Page
|               |  |                                                                                                                                        |    |     
|               |  | PART I. FINANCIAL INFORMATION                                                                                                          |    |      | 2  | 
|Item 1.        |  | Financial Statements(Unaudited)                                                                                                        |    |      | 2  | 
|               |  | Consolidated Statements of Income for the three months ended March 31, 2003 and 2002                                                   |    |      | 2  | 
|               |  | Consolidated Balance Sheets at March 31, 2003, December 31, 2002 and March 31, 2002                                                    |    |      | 3  | 
|               |  | Consolidated Statements of Changes in Stockholders Equity and Comprehensive Income
for the three months ended March 31, 2003 and 2002 |    |      | 5  | 
|               |  | Consolidated Statements of Cash Flows for the three months ended March 31, 2003 and 2002                                               |    |      | 6  | 
|               |  | Notes to Consolidated Financial Statements                                                                                             |    |      | 7  | 
|Item 2.        |  | Managements Discussion and Analysis of Financial Condition
and Results of Operations                                                  |    |      | 15 | 
|Item 3.        |  | Quantitative and Qualitative Disclosures About Market Risk                                                                             |    |      | 32 | 
|Item 4.        |  | Controls and Procedures                                                                                                                |    |      | 34 | 
|               |  | PART II. OTHER INFORMATION                                                                                                             |    |      | 34 | 
|Item 6.        |  | Exhibits and Reports on Form 8-K                                                                                                       |    |      | 34 | 
|SIGNATURE      |  |                                                                                                                                        | 35 |     
|CERTIFICATIONS |  |                                                                                                                                        | 36 |     
|EXHIBIT INDEX  |  |                                                                                                                                        |    |     

Exhibit 12      Statement Regarding Computation of Ratios.

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

1



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PART I. FINANCIAL INFORMATION




Item 1. Financial Statements

BancWest Corporation and
Subsidiaries




|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |         | 
|------------------------------------ | ----------------------------------------------------- | - | ---------------------------- | ------- | ---- |  |  |  |  | - | ------- | ------- | 
|                                     |                                                       |   | Three Months Ended March 31,
|                                     |                                                       |   |                             
|                                     |                                                       |   | 2003                         |         | 2002
|                                     |                                                       |   |                              |         |     
|                                     |                                                       |   | (in thousands)              
|Interest income                      |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Interest and fees on loans           |                                                       | $ | 338,259                      |         |      |  |  |  |  | $ | 256,229 |        
|Lease financing income               |                                                       |   | 36,028                       |         |      |  |  |  |  |   | 36,726  |        
|Interest on investment securities:   |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|                                     | Taxable interest income                               |   |                              | 41,797  |      |  |  |  |  |   |         | 34,262  | 
|                                     | Exempt from Federal income taxes                      |   |                              | 154     |      |  |  |  |  |   |         | 44      | 
|Other interest income                |                                                       |   | 1,238                        |         |      |  |  |  |  |   | 2,023   |        
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|                                     | Total interest income                                 |   |                              | 417,476 |      |  |  |  |  |   |         | 329,284 | 
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Interest expense                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Deposits                             |                                                       |   | 53,147                       |         |      |  |  |  |  |   | 63,629  |        
|Short-term borrowings                |                                                       |   | 3,696                        |         |      |  |  |  |  |   | 5,793   |        
|Long-term debt                       |                                                       |   | 45,394                       |         |      |  |  |  |  |   | 35,382  |        
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|                                     | Total interest expense                                |   |                              | 102,237 |      |  |  |  |  |   |         | 104,804 | 
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|                                     | Net interest income                                   |   |                              | 315,239 |      |  |  |  |  |   |         | 224,480 | 
|Provision for credit losses          |                                                       |   | 22,690                       |         |      |  |  |  |  |   | 20,007  |        
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|                                     | Net interest income after
provision for
credit losses |   |                              | 292,549 |      |  |  |  |  |   |         | 204,473 | 
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Noninterest income                   |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Service charges on deposit accounts  |                                                       |   | 37,029                       |         |      |  |  |  |  |   | 25,974  |        
|Trust and investment services income |                                                       |   | 9,507                        |         |      |  |  |  |  |   | 8,140   |        
|Other service charges and fees       |                                                       |   | 35,615                       |         |      |  |  |  |  |   | 23,498  |        
|Securities gains, net                |                                                       |   | 1,892                        |         |      |  |  |  |  |   | 228     |        
|Other                                |                                                       |   | 10,791                       |         |      |  |  |  |  |   | 4,784   |        
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|                                     | Total noninterest income                              |   |                              | 94,834  |      |  |  |  |  |   |         | 62,624  | 
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Noninterest expense                  |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Salaries and wages                   |                                                       |   | 84,662                       |         |      |  |  |  |  |   | 60,094  |        
|Employee benefits                    |                                                       |   | 37,646                       |         |      |  |  |  |  |   | 23,482  |        
|Occupancy expense                    |                                                       |   | 22,320                       |         |      |  |  |  |  |   | 15,614  |        
|Outside services                     |                                                       |   | 17,567                       |         |      |  |  |  |  |   | 13,252  |        
|Intangible amortization              |                                                       |   | 5,763                        |         |      |  |  |  |  |   | 2,757   |        
|Equipment expense                    |                                                       |   | 11,156                       |         |      |  |  |  |  |   | 7,729   |        
|Restructuring and integration costs  |                                                       |   |                             |         |      |  |  |  |  |   | 6,015   |        
|Other                                |                                                       |   | 41,546                       |         |      |  |  |  |  |   | 30,155  |        
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|                                     | Total noninterest expense                             |   |                              | 220,660 |      |  |  |  |  |   |         | 159,098 | 
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Income before income taxes           |                                                       |   | 166,723                      |         |      |  |  |  |  |   | 107,999 |        
|Provision for income taxes           |                                                       |   | 64,642                       |         |      |  |  |  |  |   | 42,582  |        
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        
|Net income                           |                                                       | $ | 102,081                      |         |      |  |  |  |  | $ | 65,417  |        
|                                     |                                                       |   |                              |         |      |  |  |  |  |   |         |        

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

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BancWest Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS(Unaudited)

|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |            |            | 
|------------------------------------------------------------------------------------- | -------------------------------- | ------------------- | ---------- | ------------------------------------- | ---------- | ------------ | ---------- | ---------- | ---------- | - | ---------- | ---------- | ---------- | 
|                                                                                      |                                  |                     |            | March 31,                             |            | December 31, |            | March 31, 
|                                                                                      |                                  |                     |            | 2003                                  |            | 2002         |            | 2002      
|                                                                                      |                                  |                     |            |                                       |            |              |            |           
|                                                                                      |                                  |                     |            | (in thousands, except per share data)
|Assets                                                                                |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Cash and due from banks                                                               |                                  | $                   | 1,591,999  |                                       |            | $            | 1,761,261  |            |            | $ | 1,338,866  |           
|Interest-bearing deposits in other banks                                              |                                  |                     | 162,194    |                                       |            |              | 2,098      |            |            |   | 182,930    |           
|Federal funds sold and securities purchased
under agreements to resell                |                                  |                     | 110,000    |                                       |            |              | 430,056    |            |            |   | 149,500    |           
|Trading assets                                                                        |                                  |                     | 67,042     |                                       |            |              | 43,430     |            |            |   | 10,165     |           
|Available-for-sale investment securities                                              |                                  |                     | 4,528,484  |                                       |            |              | 3,940,769  |            |            |   | 3,161,922  |           
|Loans held for sale                                                                   |                                  |                     | 82,563     |                                       |            |              | 85,274     |            |            |   | 44,642     |           
|Loans and leases:                                                                     |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|                                                                                      | Loans and leases                 |                     |            | 24,056,267                            |            |              |            | 24,146,087 |            |   |            | 24,070,667 |           
|                                                                                      | Less allowance for credit losses |                     |            | 396,049                               |            |              |            | 384,081    |            |   |            | 383,003    |           
|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Net loans and leases                                                                  |                                  |                     | 23,660,218 |                                       |            |              | 23,762,006 |            |            |   | 23,687,664 |           
|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Premises and equipment, net                                                           |                                  |                     | 378,985    |                                       |            |              | 380,272    |            |            |   | 410,429    |           
|Customers acceptance liability                                                       |                                  |                     | 29,728     |                                       |            |              | 25,945     |            |            |   | 11,292     |           
|Core deposit intangible, net                                                          |                                  |                     | 204,647    |                                       |            |              | 210,411    |            |            |   | 231,925    |           
|Goodwill                                                                              |                                  |                     | 3,226,829  |                                       |            |              | 3,229,200  |            |            |   | 3,380,392  |           
|Other real estate owned and repossessed
personal property                             |                                  |                     | 18,544     |                                       |            |              | 19,613     |            |            |   | 24,393     |           
|Other assets                                                                          |                                  |                     | 854,856    |                                       |            |              | 858,932    |            |            |   | 690,373    |           
|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Total assets                                                                          |                                  | $                   | 34,916,089 |                                       |            | $            | 34,749,267 |            |            | $ | 33,324,493 |           
|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Liabilities and Stockholders Equity                                                  |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Deposits:                                                                             |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|                                                                                      | Domestic:                        |                     |            |                                       |            |              |            |            |            |   |            |            |           
|                                                                                      |                                  | Interest-bearing    |            | $                                     | 16,645,026 |              |            | $          | 16,720,767 |   |            | $          | 17,146,357 | 
|                                                                                      |                                  | Noninterest-bearing |            |                                       | 6,986,600  |              |            |            | 7,144,929  |   |            |            | 6,200,071  | 
|                                                                                      | Foreign                          |                     |            | 706,967                               |            |              |            | 691,783    |            |   |            | 737,492    |           
|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Total deposits                                                                        |                                  |                     | 24,338,593 |                                       |            |              | 24,557,479 |            |            |   | 24,083,920 |           
|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Federal funds purchased and securities sold
under agreements to repurchase            |                                  |                     | 830,388    |                                       |            |              | 791,476    |            |            |   | 810,192    |           
|Short-term borrowings                                                                 |                                  |                     | 949,012    |                                       |            |              | 733,274    |            |            |   | 1,330,673  |           
|Acceptances outstanding                                                               |                                  |                     | 29,728     |                                       |            |              | 25,945     |            |            |   | 11,292     |           
|Long-term debt                                                                        |                                  |                     | 3,313,368  |                                       |            |              | 3,376,947  |            |            |   | 2,120,993  |           
|Guaranteed preferred beneficial interests
in Companys junior subordinated debentures |                                  |                     | 258,476    |                                       |            |              | 259,191    |            |            |   | 261,261    |           
|Other liabilities                                                                     |                                  |                     | 1,227,705  |                                       |            |              | 1,137,473  |            |            |   | 1,041,529  |           
|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |           
|Total liabilities                                                                     |                                  | $                   | 30,947,270 |                                       |            | $            | 30,881,785 |            |            | $ | 29,659,860 |           
|                                                                                      |                                  |                     |            |                                       |            |              |            |            |            |   |            |           

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)

|                                           |                                                                                                        |                                                                                         |            |                                       |     |              |            |           |     |   |            |           |     | 
|------------------------------------------ | ------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------- | ---------- | ------------------------------------- | --- | ------------ | ---------- | --------- | --- | - | ---------- | --------- | --- | 
|                                           |                                                                                                        |                                                                                         |            | March 31,                             |     | December 31, |            | March 31,
|                                           |                                                                                                        |                                                                                         |            | 2003                                  |     | 2002         |            | 2002     
|                                           |                                                                                                        |                                                                                         |            |                                       |     |              |            |          
|                                           |                                                                                                        |                                                                                         |            | (in thousands, except per share data)
|Commitments and contingent liabilities     |                                                                                                        |                                                                                         |            |                                       |     |              |            |           |     |   |            |          
|Stockholders equity:                      |                                                                                                        |                                                                                         |            |                                       |     |              |            |           |     |   |            |          
|                                           | Class A common stock, par value $.01 per share at March 31, 2003,
December 31, 2002 and March 31, 2002 |                                                                                         |            |                                       |     |              |            |           |     |   |            |           |    
|                                           |                                                                                                        | Authorized  150,000,000 shares at March 31, 2003,
December 31, 2002 and March 31, 2002 |            |                                       |     |              |            |           |     |   |            |           |     | 
|                                           |                                                                                                        | Issued  85,759,123 shares at March 31, 2003, December 31, 2002
and March 31, 2002      |            | $                                     | 858 |              |            | $         | 858 |   |            | $         | 858 | 
|                                           | Surplus                                                                                                |                                                                                         |            | 3,419,927                             |     |              |            | 3,419,927 |     |   |            | 3,584,978 |    
|                                           | Retained earnings                                                                                      |                                                                                         |            | 471,715                               |     |              |            | 369,634   |     |   |            | 73,719    |    
|                                           | Accumulated other comprehensive income, net                                                            |                                                                                         |            | 76,319                                |     |              |            | 77,063    |     |   |            | 5,078     |    
|                                           |                                                                                                        |                                                                                         |            |                                       |     |              |            |           |     |   |            |           |     | 
|Total stockholders equity                 |                                                                                                        |                                                                                         | 3,968,819  |                                       |     |              | 3,867,482  |           |     |   | 3,664,633  |          
|                                           |                                                                                                        |                                                                                         |            |                                       |     |              |            |           |     |   |            |           |     | 
|Total liabilities and stockholders equity |                                                                                                        | $                                                                                       | 34,916,089 |                                       |     | $            | 34,749,267 |           |     | $ | 33,324,493 |          
|                                           |                                                                                                        |                                                                                         |            |                                       |     |              |            |           |     |   |            |          

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

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BancWest Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF
CHANGES IN STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME(Unaudited)

|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |         |   | 
|-------------------------------- | ----------------------------------------------------------------------------------------------------------- |  | ---------- | ------------ |  | ------ | --- | ------- |  | -------- | --------- | ------------------------------------- |  | ----- | ------- | ------- |  | - | ------ | ----------- | - | - | --------- | ------- | - | 
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        | Accumulated |   |   |           |        
|                                 |                                                                                                             |  |            | Class A      |  |        |     |         |  |          |           |                                       |  | Other |         |         |  |  
|                                 |                                                                                                             |  |            | Common Stock |  |        |     |         |  | Retained |           | Comprehensive                         |  |       |         |        
|                                 |                                                                                                             |  |            | Shares       |  | Amount |     | Surplus |  | Earnings |           | Income, net                           |  | Total
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |      
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           | (in thousands, except per share data) |  |       |         |        
|Balance, December 31, 2002       |                                                                                                             |  | 85,759,123 |              |  | $      | 858 |         |  | $        | 3,419,927 |                                       |  | $     | 369,634 |         |  | $ | 77,063 |             |   | $ | 3,867,482 |        
|Comprehensive income:            |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        
|                                 | Net income                                                                                                  |  |            |             |  |        |     |        |  |          |           |                                      |  |       |         | 102,081 |  |   |        |            |   |   |           | 102,081 |  
|                                 | Net unrealized loss on
investment securities available for sale, net of tax and reclassification adjustment |  |            |             |  |        |     |        |  |          |           |                                      |  |       |         |        |  |   |        | (2,089      | ) |   |           | (2,089  | )
|                                 | Net unrealized gain on
cash-flow derivative hedges, net of tax and
reclassification adjustment              |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        | 1,345       |   |   |           | 1,345   |  
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        
|                                 | Comprehensive income                                                                                        |  |            |             |  |        |     |        |  |          |           |                                      |  |       |         | 102,081 |  |   |        | (744        | ) |   |           | 101,337 |  
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        
|Balance, March 31, 2003          |                                                                                                             |  | 85,759,123 |              |  | $      | 858 |         |  | $        | 3,419,927 |                                       |  | $     | 471,715 |         |  | $ | 76,319 |             |   | $ | 3,968,819 |        
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        
|Balance, December 31, 2001       |                                                                                                             |  | 56,074,874 |              |  | $      | 561 |         |  | $        | 1,985,275 |                                       |  | $     | 8,302   |         |  | $ | 7,782  |             |   | $ | 2,001,920 |        
|Comprehensive income:            |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        
|                                 | Net income                                                                                                  |  |            |             |  |        |     |        |  |          |           |                                      |  |       |         | 65,417  |  |   |        |            |   |   |           | 65,417  |  
|                                 | Net unrealized loss on
investment securities
available for sale, net of
tax and reclassification
adjustment |  |            |             |  |        |     |        |  |          |           |                                      |  |       |         |        |  |   |        | (1,885      | ) |   |           | (1,885  | )
|                                 | Net unrealized loss on
cash-flow derivative
hedges, net of tax and
reclassification
adjustment              |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        | (819        | ) |   |           | (819    | )
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        
|                                 | Comprehensive income                                                                                        |  |            |             |  |        |     |        |  |          |           |                                      |  |       |         | 65,417  |  |   |        | (2,704      | ) |   |           | 62,713  |  
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        
|Issuance of Class A common stock |                                                                                                             |  | 29,684,249 |              |  |        | 297 |         |  |          | 1,599,703 |                                       |  |       |        |         |  |   |       |             |   |   | 1,600,000 |        
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        
|Balance, March 31, 2002          |                                                                                                             |  | 85,759,123 |              |  | $      | 858 |         |  | $        | 3,584,978 |                                       |  | $     | 73,719  |         |  | $ | 5,078  |             |   | $ | 3,664,633 |        
|                                 |                                                                                                             |  |            |              |  |        |     |         |  |          |           |                                       |  |       |         |         |  |   |        |             |   |   |           |        

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)


|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |            |   |         |  
|------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------- | - | ------------------------------------------------------- | ---------- | ---------------------------- | ------- | ---------- | ---------- | - | ------- | -
|                                                                         |                                                                                                       |   |                                                         |            | Three Months Ended March 31,
|                                                                         |                                                                                                       |   |                                                         |            |                             
|                                                                         |                                                                                                       |   |                                                         |            | 2003                         |         | 2002      
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |           
|                                                                         |                                                                                                       |   |                                                         |            | (in thousands)              
|Cash flows from operating activities:                                    |                                                                                                       |   |                                                         |            |                              |         |            |           
|                                                                         | Net income                                                                                            |   | $                                                       | 102,081    |                              |         | $          | 65,417     |  
|                                                                         | Adjustments to reconcile net income to net cash
provided by operating activities:                     |   |                                                         |            |                              |         |            |            |  
|                                                                         |                                                                                                       |   | Provision for credit losses                             |            |                              | 22,690  |            |            |   | 20,007  |  
|                                                                         |                                                                                                       |   | Depreciation and amortization                           |            |                              | 17,531  |            |            |   | 11,511  |  
|                                                                         |                                                                                                       |   | Increase in deferred income taxes                       |            |                              | 63,437  |            |            |   | 4,941   |  
|                                                                         |                                                                                                       |   | Increase in interest receivable                         |            |                              | (5,686  | )          |            |   | (75,333 | )
|                                                                         |                                                                                                       |   | Increase in interest payable                            |            |                              | 24,981  |            |            |   | 49,285  |  
|                                                                         |                                                                                                       |   | Decrease (increase) in prepaid expenses                 |            |                              | 5,125   |            |            |   | (27,844 | )
|                                                                         |                                                                                                       |   | Increase in trading assets                              |            |                              | (23,612 | )          |            |   | (1,885  | )
|                                                                         |                                                                                                       |   | Decrease (increase) in loans held for sale              |            |                              | 2,711   |            |            |   | 1,417   |  
|                                                                         |                                                                                                       |   | Securities gains, net                                   |            |                              | (1,892  | )          |            |   | (228    | )
|                                                                         |                                                                                                       |   | Increase
in accrued restructuring and integration costs |            |                              |        |            |            |   | 6,015   |  
|                                                                         |                                                                                                       |   | Other                                                   |            |                              | 5,452   |            |            |   | 61,652  |  
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |            |  
|Net cash provided by operating activities                                |                                                                                                       |   | 212,818                                                 |            |                              |         | 114,955    |           
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |           
|Cash flows from investing activities:                                    |                                                                                                       |   |                                                         |            |                              |         |            |           
|                                                                         | Net increase in interest-bearing deposits in other banks                                              |   |                                                         | (160,096   | )                            |         |            | (72,995    | )
|                                                                         | Net decrease (increase) in Federal funds sold and securities
purchased under agreements to resell     |   |                                                         | 320,056    |                              |         |            | 119,500    |  
|                                                                         | Proceeds from maturity of available-for-sale investment securities                                    |   |                                                         | 465,100    |                              |         |            | 142,825    |  
|                                                                         | Proceeds from the sale of available-for-sale securities                                               |   |                                                         | 101,053    |                              |         |            | 60,062     |  
|                                                                         | Purchase of available-for-sale investment securities                                                  |   |                                                         | (1,154,535 | )                            |         |            | (306,995   | )
|                                                                         | Net increase in loans and leases from originations and collections                                    |   |                                                         | (118,592   | )                            |         |            | (284,522   | )
|                                                                         | Purchase of loans                                                                                     |   |                                                         | (26,510    | )                            |         |            |           |  
|                                                                         | Proceeds from the sale of loans                                                                       |   |                                                         | 227,045    |                              |         |            | 69,694     |  
|                                                                         | Net cash provided by (paid for) acquisitions                                                          |   |                                                         |           |                              |         |            | (1,793,000 | )
|                                                                         | Purchase of premises and equipment                                                                    |   |                                                         | (8,003     | )                            |         |            | 6,854      |  
|                                                                         | Other                                                                                                 |   |                                                         | 932        |                              |         |            | (311       | )
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |            |  
|Net cash provided by (used) in investing activities                      |                                                                                                       |   | (353,550                                                | )          |                              |         | (2,058,888 | )         
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |           
|Cash flows from financing activities:                                    |                                                                                                       |   |                                                         |            |                              |         |            |           
|                                                                         | Net increase (decrease) in deposits                                                                   |   |                                                         | (218,886   | )                            |         |            | 401,822    |  
|                                                                         | Net increase (decrease) in Federal funds purchased and securities
sold under agreements to repurchase |   |                                                         | 38,912     |                              |         |            | (212,902   | )
|                                                                         | Net increase in other short-term borrowings                                                           |   |                                                         | 215,738    |                              |         |            | 937,447    |  
|                                                                         | Proceeds from long-term debt                                                                          |   |                                                         | 75,000     |                              |         |            | 40,000     |  
|                                                                         | Repayment of long-term and subordinate debt                                                           |   |                                                         | (139,294   | )                            |         |            | (220,830   | )
|                                                                         | Proceeds from issuance of Class A common stock                                                        |   |                                                         |           |                              |         |            | 1,600,000  |  
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |            |  
|Net cash provided by (used in) financing activities                      |                                                                                                       |   | (28,530                                                 | )          |                              |         | 2,545,537  |           
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |           
|Net increase (decrease) in cash and due from banks                       |                                                                                                       |   | (169,262                                                | )          |                              |         | 601,604    |           
|Cash and due from banks at beginning of period                           |                                                                                                       |   | 1,761,261                                               |            |                              |         | 737,262    |           
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |            |  
|Cash and due from banks at end of period                                 |                                                                                                       | $ | 1,591,999                                               |            |                              | $       | 1,338,866  |           
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |           
|Supplemental disclosures:                                                |                                                                                                       |   |                                                         |            |                              |         |            |           
|                                                                         | Interest paid                                                                                         |   | $                                                       | 77,256     |                              |         | $          | 55,159     |  
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |           
|                                                                         | Income taxes paid                                                                                     |   | $                                                       | 1,205      |                              |         | $          | 3,503      |  
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |           
|Supplemental schedule of noncash investing
and financing activities:     |                                                                                                       |   |                                                         |            |                              |         |            |           
|                                                                         | Loans converted into other real estate owned and
repossessed personal property                        |   | $                                                       | 1,036      |                              |         | $          | 4,161      |  
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |            |  
|                                                                         | Loans made to facilitate the sale of other real estate owned                                          |   | $                                                       | 216        |                              |         | $          | 57         |  
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |           
|In connection with acquisitions, the following
liabilities were assumed: |                                                                                                       |   |                                                         |            |                              |         |            |           
|                                                                         | Fair value of assets acquired                                                                         |   | $                                                       |           |                              |         | $          | 10,959,000 |  
|                                                                         | Cash (paid) received                                                                                  |   |                                                         |           |                              |         |            | (1,793,000 | )
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |            |  
|Liabilities assumed                                                      |                                                                                                       | $ |                                                        |            |                              | $       | 9,166,000  |           
|                                                                         |                                                                                                       |   |                                                         |            |                              |         |            |           

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

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BancWest Corporation and Subsidiaries




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)




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

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

Reclassifications

The 2002 Consolidated Financial Statements were reclassified in certain
respects to conform to the 2003 presentation. Such reclassifications did not
have a material effect on the Consolidated Financial Statements.



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

United California Bank Acquisition

On March 15, 2002, BancWest completed its acquisition of all outstanding
common stock of United California Bank (UCB) from UFJ Bank Ltd. of Japan.
UCB was subsequently merged with and into Bank of the West in April 2002 and
its branches were integrated into the Banks branch network system in the third
quarter of 2002. On the date of acquisition by BancWest, UCB had 115 branches
(located exclusively in California), total assets of $10.1 billion, net loans
of $8.5 billion and total deposits of $8.2 billion. The preceding amounts do
not include purchase price adjustments. UCBs strong presence in Southern
California complements BancWests existing network in Northern California,
Nevada, New Mexico and the Pacific Northwest. Results of operations of UCB are
included in our Consolidated Financial Statements beginning on March 15, 2002.
The purchase price of approximately $2.4 billion was paid in cash and accounted
for as a purchase. BNP Paribas funded BancWests acquisition of UCB by
providing $1.6 billion of additional capital and lending the Company $800
million. We expect to achieve cost savings for the combined company of
approximately $75-80 million per year beginning in 2003. These anticipated
cost savings primarily involve compensation and occupancy-related expenses.

The following table provides an allocation of the purchase price:

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

BancWest incurred expenses associated with exiting certain branches,
operational centers and technology platforms of the pre-merged Bank of the
West, as well as certain other conversion and restructuring expenses, totaling
approximately $18 million. Exit costs associated with UCB were considered as
part of the purchase accounting for the acquisition. BancWest established a
severance reserve of approximately $40.5 million. Approximately 750 employees
throughout the combined organization have been or will be displaced in
conjunction with the acquisition. In addition to the severance reserve, we
recorded the following accruals: $34.5 million for losses on subleases, $8.0
million for contract cancellations, $1.3 million for relocation and other. In
the twelve months ended March 31, 2003, we made the following adjustments to
the reserves: $6.9 million increase for severance, $7.5 million decrease for
losses on subleases, $4.9 million increase for contract cancellations and $0.2
million decrease for relocation. In addition, the reserves were decreased as
follows: $28.2 million for severance payments, $6.0 million for sublease loss
amortization, $7.6 million for contract cancellation payments and $1.1 million
for relocation and other payments.

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

The following unaudited pro forma financial information for the three months
ended March 31, 2002 assumes that the UCB acquisition occurred as of January 1,
2002, after giving effect to certain adjustments. The pro forma results have
been prepared for comparative purposes only and are not necessarily indicative
of the results of operations which may occur in the future or which would have
occurred had the UCB acquisition been consummated on the date indicated:

Pro Forma Financial Information for
the Three Months EndedMarch 31, 2002

|                            |  |                |         | 
|--------------------------- |  | -------------- | ------- | 
|                            |  | (in thousands)
|Net Interest Income         |  | $              | 313,014 | 
|Provision for Credit Losses |  |                | 36,426  | 
|Noninterest Income          |  |                | 82,550  | 
|Noninterest Expense         |  |                | 229,909 | 
|Income Tax Expense          |  |                | 49,256  | 
|                            |  |                |         | 
|Net Income                  |  | $              | 79,973  | 
|                            |  |                |         | 

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



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

Any portion of the changes in the fair value of a derivative designated as
a hedge that is deemed ineffective is recorded in current period earnings; this
amount was not material in the three months ended March 31, 2003.

Fair Value Hedges

The Company has various derivative instruments that hedge the fair values
of recognized assets or liabilities or of unrecognized firm commitments (fair
value hedges). At March 31, 2003, the Company carried an interest rate swap
of $2.8 million with a fair market value (loss) of $0.8 million that was
categorized as a fair value hedge for a commercial loan. The Company receives
1-month LIBOR and pays a fixed rate of 8.32%.

At March 31, 2003, we carried a $150 million interest rate swap with BNP
Paribas to hedge obligations under the 9.5% BancWest Capital I Quarterly Income
Preferred Securities. We pay 3-month LIBOR plus 3.69% and receive fixed
payments at 9.5%. The fair market value (gain) of the swap at March 31, 2003
was $1.2 million.

Cash Flow Hedges

At March 31, 2003, the Company carried interest rate swaps of $600 million
with a fair market value (gain) of $59.9 million which are categorized as cash
flow hedges, to hedge our LIBOR-based commercial loans. The interest rate
swaps were entered into during 2001 by UCB and mature in 2006. We pay 3-month
LIBOR and receive fixed rates ranging from 5.64% to 5.87%. The net settlement
on the $600 million swaps has increased commercial loan interest income by $5.8
million from January 1, 2003 through March 31, 2003. The Company estimates net
settlement gains, recorded as commercial loan interest income, of $23.2 million
over the next twelve months resulting from these hedges.

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

Free-standing Derivative Instruments

Free-standing derivative instruments include derivative transactions
entered into for risk management purposes that do not otherwise qualify for
hedge accounting. Interest rate lock commitments issued on residential
mortgage loans intended to be held for resale are considered free-standing
derivative instruments. The interest rate exposure on these commitments is
economically hedged primarily with best efforts forward sale contracts. The
commitments and free-standing derivative instruments are marked to market and
recorded as a component of noninterest income in the consolidated statement of
income. Once a loan commitment is funded, the same forward sale contract is
designated as a fair value hedge of the loan held for sale, as described above.
Trading activities primarily involve providing various free-standing interest
rate and foreign exchange derivative products to customers. Interest-rate
derivative instruments utilized by the Company in its trading operations
include interest-rate swaps, caps, floors and collars.

The following table summarizes derivatives held by the Company as of March
31, 2003 and 2002:

|                                                    |  |  |  |  |  |                |           |        |  |          |        |  |  |   |        |          |  |        |  |          |  |   |           |        |  |   |        |  |  |   |        |  
|--------------------------------------------------- |  |  |  |  |  | -------------- | --------- | ------ |  | -------- | ------ |  |  | - | ------ | -------- |  | ------ |  | -------- |  | - | --------- | ------ |  | - | ------ |  |  | - | ------ | -
|                                                    |  |  |  |  |  | 2003           |           | 2002  
|                                                    |  |  |  |  |  |                |           |       
|Contractual Amounts Which                           |  |  |  |  |  |                |           |        |  | Credit   |        |  |  |   |        |          |  |        |  |          |  |   |           | Credit |  |   |        | 
|Represent                                           |  |  |  |  |  | Notional       |           | Risk   |  | Net Fair |        |  |  |   |        | Notional |  | Risk   |  | Net Fair
|Credit Risk:                                        |  |  |  |  |  | Amount         |           | Amount |  | Value    |        |  |  |   |        | Amount   |  | Amount |  | Value   
|                                                    |  |  |  |  |  |                |           |        |  |          |        |  |  |   |        |          |  |        |  |         
|                                                    |  |  |  |  |  | (in
thousands)
|Held for Hedge Purposes                             |  |  |  |  |  |                |           |        |  |          |        |  |  |   |        |          |  |        |  |          |  |   |           |        |  |   |        |  |  |   |        |  
|Interest rate swaps                                 |  |  |  |  |  | $              | 752,798   |        |  | $        | 61,128 |  |  | $ | 60,346 |          |  |        |  |          |  | $ | 600,000   |        |  | $ | 10,845 |  |  | $ | 10,845 |  
|Held for Trading or Free-standing:                  |  |  |  |  |  |                |           |        |  |          |        |  |  |   |        |          |  |        |  |          |  |   |           |        |  |   |        |  |  |   |        |  
|Interest rate swaps                                 |  |  |  |  |  |                | 1,534,787 |        |  |          | 26,496 |  |  |   | (8,593 | )        |  |        |  |          |  |   | 1,215,206 |        |  |   | 14,703 |  |  |   | (2,837 | )
|Purchased interest rate options                     |  |  |  |  |  |                | 87,127    |        |  |          | 611    |  |  |   | 611    |          |  |        |  |          |  |   | 66,105    |        |  |   | 675    |  |  |   | 675    |  
|Written interest rate options                       |  |  |  |  |  |                | 81,738    |        |  |          |       |  |  |   | (217   | )        |  |        |  |          |  |   | 57,813    |        |  |   |       |  |  |   | (292   | )
|Forward interest rate options                       |  |  |  |  |  |                | 63,500    |        |  |          |       |  |  |   | (318   | )        |  |        |  |          |  |   |          |        |  |   |       |  |  |   |       |  
|Rate Locks                                          |  |  |  |  |  |                | 97,700    |        |  |          | 1,526  |  |  |   | 1,526  |          |  |        |  |          |  |   |          |        |  |   |       |  |  |   |       |  
|Commitments to purchase and sell
foreign currencies |  |  |  |  |  |                | 445,731   |        |  |          | 6,030  |  |  |   | (63    | )        |  |        |  |          |  |   | 432,480   |        |  |   | 4,180  |  |  |   | 316    |  
|Purchased foreign exchange options                  |  |  |  |  |  |                | 31,964    |        |  |          | 274    |  |  |   | 274    |          |  |        |  |          |  |   |          |        |  |   |       |  |  |   |       |  
|Written foreign exchange options                    |  |  |  |  |  |                | 31,964    |        |  |          |       |  |  |   | (274   | )        |  |        |  |          |  |   |          |        |  |   |       |  |  |   |       |  



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

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

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

Bank of the West

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

Regional Banking:

Regional Bankings primary markets include California, Nevada, the Pacific
Northwest region and New Mexico. The Northern California Division is comprised
of the Greater San Francisco Bay area. The San Francisco Bay area is one of
Californias wealthiest regions. The Southern California Division stretches
from Santa Barbara in the north through the L.A. Metro

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

area to San Diego in the South. The largest portion of Californias population
resides in this geographic region. The Valley/ Nevada Division contains the
Central Valley area of California and the state of Nevada. The Central Valley
of California is an area that has been experiencing rapid transition from a
largely agricultural base to a mix of agricultural and commercial enterprises.
Nevada has been the fastest growing state in the country for the past decade.
The Pacific Northwest Division includes Oregon, Washington and Idaho. The New
Mexico Division is centered in the Albuquerque metropolitan area where we have
the third largest market share. The senior executives in the divisions are
responsible for both retail and business banking activities in their markets.

Regional Banking utilizes its branch network as its principal funding
source. Bank of the Wests telephone banking service, a network of automated
teller machines and the online eTimeBanker service provide retail customers
with other means of accessing and managing their accounts. A key element of
Bank of the Wests strategy is to seek to distinguish itself as the provider of
the best value in banking services. To this end, Regional Banking seeks to
position itself within its markets as an alternative to both the higher-priced,
smaller boutique commercial banks and the larger money center commercial
banks, which may be perceived as offering lower service and lower prices on a
mass market basis.

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

The Regional Banking Segment includes a Business Banking Division which supports commercial
lending activities for middle market business customers through 14 Business
Banking centers located throughout California, as well as Portland, Oregon,
Reno and Las Vegas, Nevada and Albuquerque, New Mexico. Each Business Banking
Center provides a wide range of loan and deposit services to medium-sized
companies with borrowing needs of $500,000 to $25 million. Lending services
include receivable and inventory financing, equipment term loans, letters of
credit, agricultural loans and trade finance. Other banking services include
cash management, insurance products, trust, investment, foreign exchange and
various international banking services.

The Regional Banking Segment also includes a Pacific Rim Division which offers multilingual services through an
18-branch network in predominately Asian American communities in California,
with specialized domestic and international products and services for both
individuals and companies. The Pacific Rim Division has a largely commercial
clientele.

Commercial Banking:

The Commercial Banking Segment supports business clients with revenues
between $25 million and $350 million. This segments clients include those
engaged in agribusiness, real estate industries, as well as, churches, Small
Business Administration (SBA) and equipment leasing clients. Services offered
include cash management, trade finance, correspondent banking services and
syndication of commercial credits exceeding $30 million.

This segment lends to agricultural clients including dairies, nurseries and growers of row crops
among others. Offices serving agribusiness are located in Central California,
Oregon and Washington. This segment also provides construction and commercial
mortgage funding for developers of single-family and apartment residences,
offices, retail space, hotels and industrial facilities. There are nine real
estate industry lending offices located throughout California, as well as in
Las Vegas, Reno and Portland. The Commercial Banking Segment provides SBA
lending nationwide to meet the real estate, construction, equipment financing
and operating expense requirements of businesses qualifying for government
guaranteed SBA programs. Equipment leasing is available through the Banks
commercial offices, branches, brokers across the nation and its subsidiary,
Trinity Capital. Trinity specializes in nationwide vendor leasing programs for
manufacturers in specific markets.

Cash management services include account analysis and reconcilement, armored car and cash vault services, investment
sweep accounts, lock box and wire transfer services among others. Business
customers can access their accounts in real time via WebDirect.

Consumer Finance:

The Consumer Finance Segment targets the origination of auto loans and
leases in the western United States, and recreational vehicle and marine loans
nationwide, with emphasis on originating credits at the high end of the credit
spectrum. These loans are originated through a network of approximately 2,000
auto dealers and 2,000 recreational vehicle and marine dealers serviced by
sales representatives located throughout the country. Collateral supporting
these loans includes new and used automobiles, light
duty trucks, vans, motor homes, travel trailers and boats. This segment also
includes Bank of the Wests wholly-owned subsidiary,

10



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##### Table of Contents



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

Essex Credit Corporation,
which focuses on the origination of marine and recreational vehicle loans
directly with customers. Essex has office locations throughout the United
States and sells substantially all of its loans to investors servicing released
for a fee.

First Hawaiian Bank

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

Retail Banking:

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

The focus of First Hawaiians retail/community banking strategy is primarily in
Hawaii, where it has a 40% market share of the domestic bank deposits of
individuals, corporations and partnerships in the state as of March 31, 2003.
The predominant economic force in Hawaii is tourism, although there have been
significant recent efforts to diversify the economy into high-tech and other
industries.

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

First Hawaiians principal funding source is its
61-branch network. Thanks to its significant market share in Hawaii, First
Hawaiian already has product or service relationships with a majority of the
households in the state. Therefore, a key goal of its retail community banking
strategy is to build those relationships by cross-selling additional products
and services to existing individual and business customers.

First Hawaiians goal is to become each customers primary bank, using core products such as
demand deposit (checking) accounts as entry points to generate cross-sales and
develop a multi-product relationship with individual and business customers.
Toward this goal, employees in First Hawaiians branch network focus on selling
bank, trust, investment and insurance products to meet customers needs and
build on those existing relationships.

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

Consumer Banking:

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

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

Commercial Banking:

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

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

International Banking Services: First Hawaiian maintains an
International Banking Division which provides international banking products
and services through First Hawaiians branch system, its international banking
headquarters in Honolulu, a Grand Cayman branch, three Guam branches, two
branches in Saipan and a representative office in Tokyo, Japan. First Hawaiian
maintains a network of correspondent banking relationships throughout the
world.

First Hawaiians international banking activities are primarily
trade-related and are concentrated in the Asia-Pacific area.

Financial Management:

Trust and Investment Services: First Hawaiians Financial
Management Segment offers a full range of trust and investment

11



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##### Table of Contents



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

management services, and also seeks to reinforce customer relationships
developed by or in conjunction with the Retail Banking Segment. The Financial
Management Segment provides asset management, advisory and administrative
services for estates, trusts and individuals. It also acts as trustee and custodian of retirement and other
employee benefit plans. At March 31, 2003, the Trust and Investments Division had approximately 4,000 accounts with a market value
of $8.4 billion. Of this total, $5.8 billion represented assets in nonmanaged
accounts and $2.6 billion were managed assets.

The Trust and Investments Division maintains custodial accounts pursuant
to which it acts as agent for customers in rendering a variety of services,
including dividend and interest collection, collection under installment
obligations and rent collection.

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

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

12



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##### Table of Contents



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

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



|                                   |  |                  |        |            |  |          |       |          |  |   |       |  |  |   |       | 
|---------------------------------- |  | ---------------- | ------ | ---------- |  | -------- | ----- | -------- |  | - | ----- |  |  | - | ----- | 
|                                   |  | Bank of the West
|                                   |  |                 
|                                   |  | Regional         |        | Commercial |  | Consumer |       |         
|(in millions)                      |  | Banking          |        | Banking    |  | Finance  |       | Other(1)
|                                   |  |                  |        |            |  |          |       |         
|Three Months Ended
March 31, 2003: |  |                  |        |            |  |          |       |          |  |   |       |  |  |   |       | 
|Net interest income                |  | $                | 121.9  |            |  | $        | 77.7  |          |  | $ | 49.7  |  |  | $ | 15.6  | 
|Noninterest income                 |  |                  | 38.7   |            |  |          | 11.4  |          |  |   | 2.7   |  |  |   | 5.5   | 
|Noninterest expense                |  |                  | 106.6  |            |  |          | 29.9  |          |  |   | 15.4  |  |  |   | 6.5   | 
|Provision for credit
losses        |  |                  | 3.6    |            |  |          | 0.3   |          |  |   | 12.8  |  |  |   |      | 
|Tax Provision
(benefit)            |  |                  | 20.0   |            |  |          | 23.4  |          |  |   | 9.6   |  |  |   | 5.8   | 
|                                   |  |                  |        |            |  |          |       |          |  |   |       |  |  |   |       | 
|Net income (loss)                  |  | $                | 30.4   |            |  | $        | 35.5  |          |  | $ | 14.6  |  |  | $ | 8.8   | 
|                                   |  |                  |        |            |  |          |       |          |  |   |       |  |  |   |       | 
|Segment Assets at
March 31         |  | $                | 7,189  |            |  | $        | 8,139 |          |  | $ | 7,179 |  |  | $ | 3,791 | 
|Segment goodwill at
March 31       |  |                  | 1,214  |            |  |          | 706   |          |  |   | 308   |  |  |   |      | 
|                                  
|Average assets                     |  | $                | 7,325  |            |  | $        | 8,189 |          |  | $ | 7,097 |  |  | $ | 3,182 | 
|Average loans                      |  |                  | 5,298  |            |  |          | 6,916 |          |  |   | 6,757 |  |  |   |      | 
|Average deposits                   |  |                  | 13,533 |            |  |          | 2,588 |          |  |   | 14    |  |  |   | 1,401 | 
|                                  
|Three Months Ended
March 31, 2002: |  |                  |        |            |  |          |       |          |  |   |       |  |  |   |       | 
|Net interest income                |  | $                | 74.8   |            |  | $        | 31.4  |          |  | $ | 41.8  |  |  | $ | 22.2  | 
|Noninterest income                 |  |                  | 25.4   |            |  |          | 1.9   |          |  |   | 2.5   |  |  |   | 1.2   | 
|Noninterest expense                |  |                  | 70.6   |            |  |          | 10.5  |          |  |   | 14.3  |  |  |   | 6.2   | 
|Provision for credit
losses        |  |                  | 1.9    |            |  |          | 1.3   |          |  |   | 11.1  |  |  |   |      | 
|Tax Provision (benefit)            |  |                  | 11.1   |            |  |          | 8.6   |          |  |   | 7.6   |  |  |   | 6.9   | 
|                                   |  |                  |        |            |  |          |       |          |  |   |       |  |  |   |       | 
|Net income (loss)                  |  | $                | 16.6   |            |  | $        | 12.9  |          |  | $ | 11.3  |  |  | $ | 10.3  | 
|                                   |  |                  |        |            |  |          |       |          |  |   |       |  |  |   |       | 
|Segment Assets at
March 31         |  | $                | 6,903  |            |  | $        | 7,100 |          |  | $ | 8,879 |  |  | $ | 2,242 | 
|Segment goodwill at
March 31       |  |                  | 1,205  |            |  |          | 703   |          |  |   | 305   |  |  |   |      | 
|                                  
|Average assets                     |  | $                | 3,740  |            |  | $        | 3,750 |          |  | $ | 6,547 |  |  | $ | 1,600 | 
|Average loans                      |  |                  | 2,413  |            |  |          | 3,170 |          |  |   | 6,125 |  |  |   |      | 
|Average deposits                   |  |                  | 9,271  |            |  |          | 335   |          |  |   | 17    |  |  |   | 1,195 | 

[Additional columns below]

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

|                                   |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |             |  |              |       |   |  |   |       |   |  |   |         |   |  |   |        | 
|---------------------------------- |  | ------------------- | ----- | -------- |  | ------- | ----- | ---------- |  | --------- | ----- | ----------- |  | -------- | --- | ----------- |  | ------------ | ----- | - |  | - | ----- | - |  | - | ------- | - |  | - | ------ | 
|                                   |  | First Hawaiian Bank |       |          |  |         |       |            |  |           |       |             |  |         
|                                   |  |                     |       |          |  |         |       |            |  |           |       |             |  |         
|                                   |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |             |  |              |       |   |  |   |       |   |  |  
|                                   |  | Retail              |       |          |  |         |       | Commercial |  | Financial |       |             |  | Other    |     | Reconciling |  | Consolidated
|(in millions)                      |  | Banking             |       | Consumer |  | Banking |       | Management |  | Other(2)  |       | BancWest(3) |  | Items(4) |     | Totals     
|                                   |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |            
|Three Months Ended
March 31, 2003: |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |             |  |              |       |   |  |   |       |   |  |   |         |   |  |   |        | 
|Net interest income                |  | $                   | 64.9  |          |  | $       | 20.0  |            |  | $         | 7.7   |             |  | $        | 0.1 |             |  | $            | (8.1  | ) |  | $ | (34.3 | ) |  | $ | 0.1     |   |  | $ | 315.3  | 
|Noninterest income                 |  |                     | 17.8  |          |  |         | 8.9   |            |  |           | 1.6   |             |  |          | 6.9 |             |  |              | 1.4   |   |  |   |      |   |  |   | (0.1    | ) |  |   | 94.8   | 
|Noninterest expense                |  |                     | 43.5  |          |  |         | 11.3  |            |  |           | 2.1   |             |  |          | 6.3 |             |  |              | (2.3  | ) |  |   | 1.3   |   |  |   | 0.1     |   |  |   | 220.7  | 
|Provision for credit
losses        |  |                     | 1.7   |          |  |         | 2.2   |            |  |           |      |             |  |          |    |             |  |              | 0.1   |   |  |   | 2.0   |   |  |   |        |   |  |   | 22.7   | 
|Tax Provision
(benefit)            |  |                     | 14.1  |          |  |         | 5.8   |            |  |           | 2.1   |             |  |          | 0.3 |             |  |              | (1.2  | ) |  |   | (15.3 | ) |  |   |        |   |  |   | 64.6   | 
|                                   |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |             |  |              |       |   |  |   |       |   |  |   |         |   |  |   |        | 
|Net income (loss)                  |  | $                   | 23.4  |          |  | $       | 9.6   |            |  | $         | 5.1   |             |  | $        | 0.4 |             |  | $            | (3.3  | ) |  | $ | (22.3 | ) |  | $ | (0.1)   |   |  | $ | 102.1  | 
|                                   |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |             |  |              |       |   |  |   |       |   |  |   |         |   |  |   |        | 
|Segment Assets at
March 31         |  | $                   | 3,287 |          |  | $       | 1,472 |            |  | $         | 1,066 |             |  | $        | 14  |             |  | $            | 3,452 |   |  | $ | 7,603 |   |  | $ | (8,276  | ) |  | $ | 34,916 | 
|Segment goodwill at
March 31       |  |                     | 650   |          |  |         | 216   |            |  |           | 118   |             |  |          | 10  |             |  |              |      |   |  |   | 5     |   |  |   |        |   |  |   | 3,227  | 
|                                  
|Average assets                     |  | $                   | 2,615 |          |  | $       | 1,212 |            |  | $         | 937   |             |  | $        | 4   |             |  | $            | 4,390 |   |  | $ | 6,516 |   |  | $ | (7,050  | ) |  | $ | 34,417 | 
|Average loans                      |  |                     | 2,389 |          |  |         | 1,189 |            |  |           | 905   |             |  |          | 1   |             |  |              | 560   |   |  |   | 2     |   |  |   | 29      |   |  |   | 24,046 | 
|Average deposits                   |  |                     | 6,392 |          |  |         | 10    |            |  |           | 21    |             |  |          | 51  |             |  |              | 155   |   |  |   |      |   |  |   | (19     | ) |  |   | 24,146 | 
|                                  
|Three Months Ended
March 31, 2002: |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |             |  |              |       |   |  |   |       |   |  |   |         |   |  |   |        | 
|Net interest income                |  | $                   | 67.2  |          |  | $       | 17.5  |            |  | $         | 5.9   |             |  | $        | 0.1 |             |  | $            | (7.8  | ) |  | $ | (27.5 | ) |  | $ | (1.1    | ) |  | $ | 224.5  | 
|Noninterest income                 |  |                     | 16.2  |          |  |         | 5.9   |            |  |           | 1.5   |             |  |          | 7.3 |             |  |              | (0.4  | ) |  |   | 0.1   |   |  |   | 1.0     |   |  |   | 62.6   | 
|Noninterest expense                |  |                     | 43.4  |          |  |         | 10.2  |            |  |           | 1.6   |             |  |          | 6.0 |             |  |              | (4.6  | ) |  |   | 0.9   |   |  |   |        |   |  |   | 159.1  | 
|Provision for credit
losses        |  |                     | 2.2   |          |  |         | 2.1   |            |  |           |      |             |  |          |    |             |  |              | 1.4   |   |  |   |      |   |  |   |        |   |  |   | 20.0   | 
|Tax Provision (benefit)            |  |                     | 14.6  |          |  |         | 4.3   |            |  |           | 1.8   |             |  |          | 0.6 |             |  |              | (1.6  | ) |  |   | (11.2 | ) |  |   | (0.1    | ) |  |   | 42.6   | 
|                                   |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |             |  |              |       |   |  |   |       |   |  |   |         |   |  |   |        | 
|Net income (loss)                  |  | $                   | 23.2  |          |  | $       | 6.8   |            |  | $         | 4.0   |             |  | $        | 0.8 |             |  | $            | (3.4  | ) |  | $ | (17.1 | ) |  | $ |        |   |  | $ | 65.4   | 
|                                   |  |                     |       |          |  |         |       |            |  |           |       |             |  |          |     |             |  |              |       |   |  |   |       |   |  |   |         |   |  |   |        | 
|Segment Assets at
March 31         |  | $                   | 3,519 |          |  | $       | 1,376 |            |  | $         | 850   |             |  | $        | 12  |             |  | $            | 2,833 |   |  | $ | 7,179 |   |  | $ | (7,569) |   |  | $ | 33,324 | 
|Segment goodwill at
March 31       |  |                     | 650   |          |  |         | 216   |            |  |           | 118   |             |  |          | 10  |             |  |              |      |   |  |   | 173   |   |  |   |        |   |  |   | 3,380  | 
|                                  
|Average assets                     |  | $                   | 2,884 |          |  | $       | 1,123 |            |  | $         | 725   |             |  | $        | 3   |             |  | $            | 3,850 |   |  | $ | 4,750 |   |  | $ | (5,179  | ) |  | $ | 23,793 | 
|Average loans                      |  |                     | 2,651 |          |  |         | 1,098 |            |  |           | 697   |             |  |          |    |             |  |              | 683   |   |  |   | 3     |   |  |   | 21      |   |  |   | 16,861 | 
|Average deposits                   |  |                     | 5,850 |          |  |         | 11    |            |  |           | 27    |             |  |          | 59  |             |  |              | 199   |   |  |   |      |   |  |   | (31     | ) |  |   | 16,933 | 

(1) The material items in the other column related to net interest income and
noninterest income consist of Treasury activities of $16.9 million and
unallocated other income of $4.2 million for March 31, 2003. The material
items in the other column for March 31, 2002 resulted substantially
from Treasury activities of $19.7 million and unallocated other income of $3.7
million.

The material items in the other column related to noninterest expense for March
31, 2003 resulted substantially from Treasury activities and unallocated
administrative items of $6.5 million. The material item in the
other column resulted mostly from unallocated merger-related costs of $6.0 million
for March 31, 2002.

The material items in the other column related to average assets are
unallocated Treasury securities for March 31, 2003 and 2002.

The material items in the other column related to average deposits are
unallocated Treasury balances for March 31, 2003 and 2002.

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

The material items in Other were related to the following for
March 31, 2003:

The material items in noninterest income resulted primarily from unallocated Treasury activities.

The material items in noninterest expense consists primarily of unallocated costs.

The material items in the other column related to average assets are
unallocated Treasury securities for March 31, 2003 and 2002.

The material items in the other column related to average deposits
are unallocated balances for March 31, 2003 and 2002.

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

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

13





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##### Table of Contents



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



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

The Company adopted SFAS 142 on January 1, 2002. The most significant
changes made by SFAS 142 are that goodwill and other indefinite lived
intangible assets are no longer amortized and will be tested for impairment at
least annually.
As of March 31, 2003, the Company had goodwill of $3.2 billion.

|                                |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       |            |          |            |        |     |   |  |   |              |   |           |   |    |   |  |   |   |   |  |   |       |    |  
|------------------------------- | --------------- | ------- | ---------------- | ------- | ------------------- | ------- | -------- | ----- | ------- | -------- | --- | ------- |  | ----- | ---------- | -------- | ---------- | ------ | --- | - |  | - | ------------ | - | --------- | - | -- | - |  | - | - | - |  | - | ----- | -- | -
|                                |                 |         | Bank of the West |         | First Hawaiian Bank
|                                |                 |         |                  |         |                    
|                                |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       | Retail     |          |            |        |     |   |  |   |              |   | Financial |   |    |   |  |   |   |   | 
|                                |                 |         | Regional         |         | Commercial          |         | Consumer |       | Banking |          |     |         |  |       | Commercial |          | Management |        |     |   |  |   | Consolidated
|(in millions)                   |                 | Banking |                  | Banking |                     | Finance |          | Group |         | Consumer |     | Banking |  | Group |            | BancWest |            | Totals
|                                |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       |            |          |            |       
|Balance as of
January 1, 2003:  |                 | $       | 1,215            |         |                     | $       | 707      |       |         | $        | 308 |         |  | $     | 650        |          |            | $      | 216 |   |  | $ | 118          |   |           | $ | 10 |   |  | $ | 5 |   |  | $ | 3,229 |   
|Purchase accounting
adjustment: |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       |            |          |            |        |     |   |  |   |              |   |           |   |    |   |  |   |   |   |  |   |       |   
|                                | UCB             |         |                  | (1      | )                   |         |          |      |         |          |     |        |  |       |            |         |            |        |     |  |  |   |              |  |           |   |    |  |  |   |   |  |  |   |       | (1 | )
|                                | Trinity Capital |         |                  |        |                     |         |          | (1    | )       |          |     |        |  |       |            |         |            |        |     |  |  |   |              |  |           |   |    |  |  |   |   |  |  |   |       | (1 | )
|                                |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       |            |          |            |        |     |   |  |   |              |   |           |   |    |   |  |   |   |   |  |   |       |   
|Balance as of
March 31, 2003:   |                 | $       | 1,214            |         |                     | $       | 706      |       |         | $        | 308 |         |  | $     | 650        |          |            | $      | 216 |   |  | $ | 118          |   |           | $ | 10 |   |  | $ | 5 |   |  | $ | 3,227 |   
|                                |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       |            |          |            |        |     |   |  |   |              |   |           |   |    |   |  |   |   |   |  |   |       |   

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##### Table of Contents



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




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

New Pronouncements

In April, 2003 the FASB issued SFAS 149, Amendment of Statement 133 on
Derivative Instruments and Hedging Activities. This Statement clarifies under
what circumstances a contract with an initial net investment meets the
characteristic of a derivative as discussed in Statement 133. In addition, it
clarifies when a derivative contains a financing component that warrants
special reporting. Statement 149 amends certain
other existing pronouncements. Those changes will result in more consistent
reporting of contracts that are derivatives in their entirety or that contain
embedded derivatives that warrant separate accounting. This statement
will be applied prospectively and is effective for contracts entered
into or modified after June 30, 2003. The adoption of SFAS
149 is not expected to have a material effect on the Companys Consolidated
Financial Statements.

FORWARD-LOOKING STATEMENTS

Certain matters contained in this filing are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Our
forward-looking statements (such as those concerning our plans, expectations,
estimates, strategies, projections and goals) involve risks and uncertainties
that could cause actual results to differ materially from those discussed in
the statements. Readers should carefully consider those risks and uncertainties
in reading this report. Factors that could cause or contribute to such
differences include, but are not limited to: (1) global, national and local
economic and market conditions, specifically with respect to changes in the
United States economy and geopolitical uncertainties; (2) the level and
volatility of interest rates and currency values; (3) government fiscal and
monetary policies; (4) credit risks inherent in the lending process; (5) loan
and deposit demand in the geographic regions where we conduct business; (6) the
impact of intense competition in the rapidly evolving banking and financial
services business; (7) extensive federal and state regulation of our business,
including the effect of current and pending legislation and regulations; (8)
whether expected revenue enhancements and cost savings are realized within
expected time frames; (9) matters relating to the integration of our business
with that of past and future merger partners, including the impact of combining
these businesses on revenues, expenses, deposit attrition, customer retention
and financial performance; (10) our reliance on third parties to provide
certain critical services, including data processing; (11) the proposal or
adoption of changes in accounting standards by the Financial Accounting
Standards Board (FASB), the Securities and Exchange Commission (SEC) or
other standard setting bodies; (12) technological changes; (13) other risks and
uncertainties discussed in this document or detailed from time to time in other
SEC filings that we make; and (14) managements ability to manage risks that
result from these and other factors. Our forward-looking statements are based
on managements current views about future events. Those statements speak only
as of the date on which they are made. We do not intend to update
forward-looking statements, and, except as required by law, we disclaim any
obligation or undertaking to update or revise any such statements to reflect
any change in our expectations or any change in events, conditions,
circumstances or assumptions on which forward-looking statements are based.

Monetary Policy and Economic Conditions

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

Critical Accounting Policies

The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make a number of judgments, estimates and assumptions that affect
the reported amount of assets, liabilities, income and expenses in our
consolidated financial statements and accompanying notes. We believe that the
judgments, estimates and assumptions used in the preparation of our
consolidated financial statements are appropriate given the factual
circumstances as of March 31, 2003. We have established policies and
procedures that are intended to ensure valuation methods are well controlled
and applied consistently from period to period. In addition, the policies and
procedures are intended to ensure that the process for changing methodologies
occurs in an appropriate manner. However, given the sensitivity of our
consolidated

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

financial statements to these critical accounting policies, the use of other
judgments, estimates and assumptions could result in material differences in
our results of operations or financial condition.

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



| |  |  | Allowance for Credit Losses: The allowance for credit losses
represents our best estimate of losses inherent in the existing loan
portfolio. The determination of the adequacy of the Allowance is
ultimately one of management judgment, which includes consideration of
many factors such as: (1) the amount of problem and potential problem
loans and leases; (2) net charge-off experience; (3) changes in the
composition of the loan and lease portfolio by type and location of
loans and leases; (4) changes in overall loan and lease risk profile and
quality; (5) general economic factors; (6) specific regional economic
factors; and (7) the fair value of collateral. Using this methodology,
we allocate the Allowance to individual loans and leases and to the
categories of loans and leases, representing probable losses based on
available information. At least quarterly, we conduct internal credit
analyses to determine which loans and leases are impaired. As a result,
we allocate specific amounts of the Allowance to individual loan and
lease relationships. Note 1 to the Consolidated Financial Statements of
our 2002 Annual Report on Form 10-K describes how we evaluate loans for
impairment. Some categories of loans and leases are not subjected to a
loan-by-loan credit analysis. Management makes an allocation to these
categories based on our statistical analysis of historic trends of
impairment and charge-offs of such loans and leases. Additionally, we
allocate a portion of the Allowance based on risk classifications of
certain loan types. Some of the Allowance is not allocated to specific
impaired loans because of the subjective nature of the process of
estimating an adequate allowance for credit losses, economic
uncertainties and other factors.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | Fair Value of Assets: Certain assets and liabilities are reflected
at their estimated fair value in the consolidated financial statements.
Such amounts are based on either quoted market prices or estimated
values derived by utilizing dealer quotes, market comparisons or
internally generated modeling techniques. Our internal models generally
involve present value of cash flow techniques.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |   |  | One of the most significant assets for which we estimate fair value is
goodwill. As of March 31, 2003, we had $3.2 billion in goodwill on our
Consolidated Balance Sheet. SFAS No. 142 requires that we perform a
two-step impairment test for goodwill at least annually. The testing
process involves estimating cash flows for future periods. The first step
compares the fair value of the reporting unit, which is an individual
business segment of the Company, to the carrying amount. If the carrying
amount exceeds the fair value, then a second step is conducted whereby the
implied fair value of the goodwill is compared with the carrying amount of
the goodwill. If the implied fair value of the goodwill is less than the
carrying amount, an impairment loss is recognized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  |  | Deferred Tax Assets: We use an estimate of future earnings to
support our position that the benefit of our deferred tax assets will be
realized. Deferred tax assets and liabilities are measured using
effective tax rates that we estimate will be in existence for the
periods such deferred tax assets and liabilities will be realized.
Generally, this estimate is based on tax rates currently in effect
adjusted for any changes resulting from enacted tax laws that have yet
to become effective. If tax rates change in the future as a result of
tax law enactments or other reasons, the value of deferred tax assets
and liabilities may be adjusted through current earnings. If future
taxable income should prove insufficient to utilize the deductions
associated with the deferred tax assets in the years such deductions are
incurred, some or all of the assets may not be realized and our net
income will be reduced.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|

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

CONSOLIDATED FINANCIAL HIGHLIGHTS(Unaudited)

|                                                                            |                              |                        |            |   |                        |   |            |   |       |   | 
|--------------------------------------------------------------------------- | ---------------------------- | ---------------------- | ---------- | - | ---------------------- | - | ---------- | - | ----- | - | 
|                                                                            |                              |                        |            |   | Three Months Ended    
|                                                                            |                              |                        |            |   | March 31,             
|                                                                            |                              |                        |            |   |                       
|                                                                            |                              |                        |            |   | 2003                   |   | 2002      
|                                                                            |                              |                        |            |  
|                                                                            |                              |                        |            |   | (dollars in thousands)
|Earnings:                                                                   |                              |                        |            |   |                        |   |            |  
|Net interest income                                                         |                              | $                      | 315,239    |   |                        | $ | 224,480    |  
|Provision for credit losses                                                 |                              |                        | 22,690     |   |                        |   | 20,007     |  
|Noninterest income                                                          |                              |                        | 94,834     |   |                        |   | 62,624     |  
|Noninterest expense                                                         |                              |                        | 220,660    |   |                        |   | 159,098    |  
|Tax provision                                                               |                              |                        | 64,642     |   |                        |   | 42,582     |  
|Net income                                                                  |                              | $                      | 102,081    |   |                        | $ | 65,417     |  
|Selected Financial Ratios:                                                  |                              |                        |            |   |                        |   |            |  
|Return on average total assets (ROA)                                        |                              |                        | 1.20       | % |                        |   | 1.12       | %
|Return on average stockholders equity (ROE)                                |                              |                        | 10.54      |   |                        |   | 11.51      |  
|Net interest margin (taxable-equivalent basis)                              |                              |                        | 4.49       |   |                        |   | 4.57       |  
|Allowance for credit losses to total loans
and leases (at March 31)         |                              |                        | 1.65       |   |                        |   | 1.59       |  
|Nonperforming assets to total assets (at March 31)                          |                              |                        | 0.67       |   |                        |   | 0.77       |  
|Allowance for credit losses to nonperforming
loans and leases (at March 31) |                              |                        | 1.83       | x |                        |   | 1.65       | x
|Regulatory Capital Ratios:                                                  |                              |                        |            |   |                        |   |            |  
|                                                                            | Leverage Ratio:              |                        |            |   |                        |   |            |   |      
|                                                                            |                              | Bank of the West       |            |   | 9.48                   | % |            |   | 7.37  | %
|                                                                            |                              | United California Bank |            |   | N/A                    |   |            |   | 10.08 |  
|                                                                            |                              | First Hawaiian Bank    |            |   | 9.38                   |   |            |   | 8.64  |  
|                                                                            | Tier 1 capital (risk-based): |                        |            |   |                        |   |            |   |      
|                                                                            |                              | Bank of the West       |            |   | 10.29                  |   |            |   | 8.11  |  
|                                                                            |                              | United California Bank |            |   | N/A                    |   |            |   | 10.83 |  
|                                                                            |                              | First Hawaiian Bank    |            |   | 11.66                  |   |            |   | 9.95  |  
|                                                                            | Total capital (risk-based):  |                        |            |   |                        |   |            |   |      
|                                                                            |                              | Bank of the West       |            |   | 12.59                  |   |            |   | 11.11 |  
|                                                                            |                              | United California Bank |            |   | N/A                    |   |            |   | 12.09 |  
|                                                                            |                              | First Hawaiian Bank    |            |   | 14.05                  |   |            |   | 12.29 |  
|Balance Sheet Data Averages:                                                |                              |                        |            |   |                        |   |            |  
|Average assets                                                              |                              |                        | 34,417,081 |   |                        |   | 23,792,836 |  
|Average loans                                                               |                              |                        | 24,046,194 |   |                        |   | 16,861,211 |  
|Average deposits                                                            |                              |                        | 24,146,346 |   |                        |   | 16,932,851 |  
|Average stockholders equity                                                |                              |                        | 3,926,093  |   |                        |   | 2,305,697  |  
|Balance Sheet Data At Period End:                                           |                              |                        |            |   |                        |   |            |  
|Assets                                                                      |                              |                        | 34,916,089 |   |                        |   | 33,324,493 |  
|Loans                                                                       |                              |                        | 24,056,267 |   |                        |   | 24,070,667 |  
|Deposits                                                                    |                              |                        | 24,338,593 |   |                        |   | 24,083,920 |  
|Stockholders equity                                                        |                              |                        | 3,968,819  |   |                        |   | 3,664,633  |  

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

NET INTEREST INCOME

The increase in net interest income for the three-month period ended March 31,
2003 over the same period in 2002 was primarily due to an increase in average
earning assets of 43.4%, or $8.6 billion, and a 68-basis-point decrease (1%
equals 100 basis points) in the rate paid on interest-bearing funding sources,
partially offset by a 78-basis point decline in the yield on average earning
assets. In addition, higher average noninterest-bearing deposits, which
increased by $2.9 billion or 76.4% in the first quarter of 2003 over the same
period in 2002, contributed to a decline in the overall cost of funds of 70
basis points. The increase in average earning assets is primarily due to the
acquisition of UCB. The decline in yields is primarily attributable to the
continued effects of the interest rate reductions implemented by the Federal
Reserve Bank in the previous two years.

In the three-month period ended March 31, 2003, as compared to the same period
in 2002, the net interest margin decreased by 8 basis points due to a decrease
in the yield on average earning assets of 78 basis points substantially offset
by a decline in the rate paid on funding sources of 70 basis points. The
continuing effects of the reduction of key interest rates by the Federal
Reserve Bank are primarily responsible for the declines in yields and rates.

Our cost of funds was lowered by an increase in average noninterest-bearing
deposits in the three months ended March 31, 2003 as compared to the same
period in 2002. The percentage of average noninterest-bearing deposits to
total average deposits increased to 27.9% for the three months ended March 31,
2003, compared to 22.6% for the same period in 2002.

The increase in average earning assets was primarily due to an increase in
average loans and leases of $7.2 billion, or 42.6%, and an increase in
investment securities of $1.5 billion, or 53.8%. These increases are primarily
due to the acquisition of UCB. Also contributing to the increase in average
loans and leases was the acquisition of Trinity Capital in the fourth quarter
of 2002.

The increase in average interest-bearing deposits and liabilities was primarily
due to an increase in average interest-bearing deposits of $4.3 billion, or
32.8%, and a $1.2 billion, or 50.5%, increase in long-term debt. Expansion of
our customer deposit base, primarily due to the acquisition of UCB, contributed
to the increase in average interest-bearing deposits. To facilitate the
purchase of UCB, BancWest borrowed $800 million from BNP Paribas. This amount
was initially recorded as short-term debt under a bridge financing arrangement.
In November, 2002, permanent financing was put in place and classified as
long-term debt. The remaining increase of approximately $400 million in
average long-term debt is primarily due to increased borrowing from the Federal
Home Loan Bank.

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

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 2003 and 2002) to make them comparable with taxable items before any income taxes are applied.

|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |      | 
|------------------------------------- | ---------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------ | ----------------------- | ---------- | ---------------------------- | --------- | ------- | ------- | -------- | ------ | ------- | ---- | ------- | --------- | ---------- | ---------- | ---------- | --------- | -------- | ------- | ------- | ------ | ---- | ---- | ---- | ---- | 
|                                      |                                                                        |                                                 |                                                        |                         |            | Three Months Ended March 31,
|                                      |                                                                        |                                                 |                                                        |                         |            |                             
|                                      |                                                                        |                                                 |                                                        |                         |            | 2003                         |           | 2002   
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |        
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         | Interest |        |         |      |         |           |            |            |            |           | Interest |         |         |        |     
|                                      |                                                                        |                                                 |                                                        |                         |            | Average                      |           | Income/ |         | Yield/   |        | Average |      | Income/ |           | Yield/    
|                                      |                                                                        |                                                 |                                                        |                         |            | Balance                      |           | Expense |         | Rate (1) |        | Balance |      | Expense |           | Rate (1)  
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |           
|                                      |                                                                        |                                                 |                                                        |                         |            | (dollars in thousands)      
|ASSETS                                |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Earning assets:                       |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      | Interest-bearing deposits in other banks                               |                                                 | $                                                      | 108,376                 |            |                              | $         | 415     |         |          |        | 1.55    | %    |         | $         | 152,079    |            |            | $         | 742      |         |         |        | 1.98 | %   
|                                      | Federal funds sold and securities
purchased under agreements to resell |                                                 |                                                        | 249,634                 |            |                              |           | 823     |         |          |        | 1.34    |      |         |           | 205,067    |            |            |           | 866      |         |         |        | 1.71 |     
|                                      | Investment securities (2),(3)                                          |                                                 |                                                        | 4,149,668               |            |                              |           | 42,587  |         |          |        | 4.16    |      |         |           | 2,697,438  |            |            |           | 34,787   |         |         |        | 5.23 |     
|                                      | Loans and leases (4),(5)                                               |                                                 |                                                        | 24,046,194              |            |                              |           | 374,287 |         |          |        | 6.31    |      |         |           | 16,861,211 |            |            |           | 292,966  |         |         |        | 7.05 |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total earning assets                            |                                                        |                         | 28,553,872 |                              |           | $       | 418,112 |          |        |         | 5.93 |         |           |            | 19,915,795 |            |           | $        | 329,361 |         |        |      | 6.71 |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Non-earning assets                    |                                                                        |                                                 | 5,863,209                                              |                         |            |                              |           |         |         |          |        |         |      |         | 3,877,041 |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total assets                                           |                         | $          | 34,417,081                   |           |         |         |          |        |         |      |         |           |            | $          | 23,792,836 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|LIABILITIES AND STOCKHOLDERS EQUITY  |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      | Interest-bearing deposits and liabilities:                             |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |     
|                                      |                                                                        | Deposits:                                       |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 | Domestic:                                              |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        | Interest-bearing demand |            | $                            | 266,838   |         |         | $        | 119    |         |      |         | 0.18      |            |            | $          | 336,207   |          |         | $       | 219    |      |      |      | 0.26 | 
|                                      |                                                                        |                                                 |                                                        | Savings                 |            |                              | 9,696,019 |         |         |          | 18,239 |         |      |         | 0.76      |            |            |            | 5,742,800 |          |         |         | 16,231 |      |      |      | 1.15 | 
|                                      |                                                                        |                                                 |                                                        | Time                    |            |                              | 6,839,649 |         |         |          | 33,231 |         |      |         | 1.97      |            |            |            | 6,664,839 |          |         |         | 45,250 |      |      |      | 2.75 | 
|                                      |                                                                        |                                                 | Foreign                                                |                         |            | 608,316                      |           |         |         | 1,558    |        |         |      | 1.04    |           |            |            | 370,124    |           |          |         | 1,929   |        |      |      | 2.11 |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total interest-bearing deposits                 |                                                        |                         | 17,410,822 |                              |           |         | 53,147  |          |        |         | 1.24 |         |           |            | 13,113,970 |            |           |          | 63,629  |         |        |      | 1.97 |     
|                                      |                                                                        | Short-term borrowings                           |                                                        |                         | 1,373,035  |                              |           |         | 3,696   |          |        |         | 1.09 |         |           |            | 1,330,766  |            |           |          | 5,793   |         |        |      | 1.77 |     
|                                      |                                                                        | Long-term debt and capital securities           |                                                        |                         | 3,580,283  |                              |           |         | 45,394  |          |        |         | 5.14 |         |           |            | 2,378,244  |            |           |          | 35,382  |         |        |      | 6.03 |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total interest-bearing deposits and
liabilities |                                                        |                         | 22,364,140 |                              |           |         | 102,237 |          |        |         | 1.85 |         |           |            | 16,822,980 |            |           |          | 104,804 |         |        |      | 2.53 |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Interest rate spread                            |                                                        |                         |            |                              |           |         |         |          |        |         | 4.08 | %       |           |            |            |            |           |          |         |         |        |      | 4.18 | %   
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Noninterest-bearing deposits                    |                                                        |                         | 6,735,524  |                              |           |         |         |          |        |         |      |         |           |            | 3,818,881  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        | Other liabilities                               |                                                        |                         | 1,391,324  |                              |           |         |         |          |        |         |      |         |           |            | 845,278    |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total liabilities                                      |                         |            | 30,490,988                   |           |         |         |          |        |         |      |         |           |            |            | 21,487,139 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        | Stockholders equity                            |                                                        |                         | 3,926,093  |                              |           |         |         |          |        |         |      |         |           |            | 2,305,697  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total liabilities and stockholders equity             |                         | $          | 34,417,081                   |           |         |         |          |        |         |      |         |           |            | $          | 23,792,836 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Impact
of noninterest-bearing sources |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          | 0.41   | %       |      |         |           |            |            |            |           |          |         |         | 0.39   | %   
|                                      |                                                                        |                                                 | Net interest income and margin on
total earning assets |                         |            |                              |           |         |         | 315,875  |        |         |      | 4.49    | %         |            |            |            |           |          |         | 224,557 |        |      |      | 4.57 | %   
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Tax equivalent adjustment                       |                                                        |                         |            |                              |           |         | 636     |          |        |         |      |         |           |            |            |            |           |          | 77      |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Net interest income                                    |                         |            |                              |           |         | $       | 315,239  |        |         |      |         |           |            |            |            |           |          | $       | 224,480 |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                         |            |                              |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     



|(1) |  | Annualized.                                                                                                                                                  
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Average debt investment securities were computed based on historical amortized cost, excluding the effects of
SFAS No. 115 adjustments.                      
|   
|(3) |  | Average investment securities includes trading securities.                                                                                                   
|   
|(4) |  | Nonaccruing loans and leases, loans held for sale and acceptances held for trading have been included in the
computations of average loan and lease balances.
|   
|(5) |  | Interest income for loans and leases included loan fees of $13,706 and $11,138 for 2003 and 2002, respectively.                                              

19



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##### Table of Contents



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

NONINTEREST INCOME

The following table reflects the key components of the change in noninterest
income for the three months ended March 31, 2003, as compared to the same
period in 2002:

|                             |                                      |                          |   |                |        |      |   |          |        |  |  |       |      |  
|---------------------------- | ------------------------------------ | ------------------------ | - | -------------- | ------ | ---- | - | -------- | ------ |  |  | ----- | ---- | -
|                             |                                      |                          |   | 2003           |        | 2002 |   | % Change
|                             |                                      |                          |   |                |        |      |   |         
|                             |                                      |                          |   | (in thousands) |        |      |   |         
|Three Months Ended March 31, |                                      |                          |   |                |        |      |   |          |        |  |  |      
|                             | Service charges on deposit accounts  |                          | $ | 37,029         |        |      | $ | 25,974   |        |  |  | 42.6  | %   
|                             | Trust and investment services income |                          |   | 9,507          |        |      |   | 8,140    |        |  |  | 16.8  |     
|                             | Other service charges and fees       |                          |   | 35,615         |        |      |   | 23,498   |        |  |  | 51.6  |     
|                             | Securities gains, net                |                          |   | 1,892          |        |      |   | 228      |        |  |  | 729.8 |     
|                             | Other                                |                          |   | 10,791         |        |      |   | 4,784    |        |  |  | 125.6 |     
|                             |                                      |                          |   |                |        |      |   |          |        |  |  |      
|                             |                                      | Total noninterest income |   | $              | 94,834 |      |   | $        | 62,624 |  |  |       | 51.4 | %
|                             |                                      |                          |   |                |        |      |   |          |        |  |  |      

As the table above shows in detail, noninterest income increased by 51.4% for
the three months ended March 31, 2003, compared to the same period in 2002.
The increase in noninterest income is substantially due to higher levels of
loans and deposits resulting from the expansion of our customer loan and
deposit base in Bank of the West, especially those resulting from the UCB
acquisition.

Approximately $1.9 million in gains on the sale of investment securities was
recognized in the three months ended March 31, 2003, primarily from the sale of
FHLB bonds and U.S. Treasury Notes.

NONINTEREST EXPENSE

The following table reflects the key components of the change in noninterest
expense for the three months ended March 31, 2003 as compared to the same
period in 2002:

|                             |                                     |                           |   |                |         |      |   |          |         |  |  |       |      |  
|---------------------------- | ----------------------------------- | ------------------------- | - | -------------- | ------- | ---- | - | -------- | ------- |  |  | ----- | ---- | -
|                             |                                     |                           |   | 2003           |         | 2002 |   | % Change
|                             |                                     |                           |   |                |         |      |   |         
|                             |                                     |                           |   | (in thousands) |         |      |   |         
|Three Months Ended March 31, |                                     |                           |   |                |         |      |   |          |         |  |  |      
|                             | Salaries and wages                  |                           | $ | 84,662         |         |      | $ | 60,094   |         |  |  | 40.9  | %   
|                             | Employee benefits                   |                           |   | 37,646         |         |      |   | 23,482   |         |  |  | 60.3  |     
|                             | Occupancy expense                   |                           |   | 22,320         |         |      |   | 15,614   |         |  |  | 42.9  |     
|                             | Outside services                    |                           |   | 17,567         |         |      |   | 13,252   |         |  |  | 32.6  |     
|                             | Intangible amortization             |                           |   | 5,763          |         |      |   | 2,757    |         |  |  | 109.0 |     
|                             | Equipment expense                   |                           |   | 11,156         |         |      |   | 7,729    |         |  |  | 44.3  |     
|                             | Stationery and supplies             |                           |   | 7,018          |         |      |   | 5,685    |         |  |  | 23.4  |     
|                             | Advertising and promotion           |                           |   | 5,203          |         |      |   | 4,657    |         |  |  | 11.7  |     
|                             | Restructuring and integration costs |                           |   |               |         |      |   | 6,015    |         |  |  |      |     
|                             | Other                               |                           |   | 29,325         |         |      |   | 19,813   |         |  |  | 48.0  |     
|                             |                                     |                           |   |                |         |      |   |          |         |  |  |      
|                             |                                     | Total noninterest expense |   | $              | 220,660 |      |   | $        | 159,098 |  |  |       | 38.7 | %
|                             |                                     |                           |   |                |         |      |   |          |         |  |  |      

As the table above shows in detail, noninterest expense increased by 38.7% for
the three months ended March 31, 2003, compared to the same period in 2002.
The increase in noninterest expense is predominately due to the UCB
acquisition. Significant items include the following:

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##### Table of Contents



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



| |  |  | The restructuring and integration efforts related to the UCB merger
are substantially complete, resulting in the decrease in the related
costs.                                                                                      
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | The increase in salaries and wages and employee benefits is
consistent with the increase to 7,713 average full-time employee
equivalents for the quarter ended March 31, 2003 as compared to 5,932
for the comparable period in 2002.
|
| |  |  | The increase of $3.0 million in intangible amortization resulted from
the amortization of the UCB core deposit intangibles.                                                                                                          

OPERATING SEGMENT RESULTS

Bank of the West

Regional Bankingsegments net income was $30.4 million in the first quarter,
compared with $16.6 million for the same period in 2002, an
increase of 83%.
Net interest income increased by $47.1 million, or 63%, compared with the first
quarter of 2002. The increase is primarily due to the UCB
acquisition, which added over 100 branches and over $3 billion
in loans to the segment. Noninterest income was up $13.3 million, or 52%, in the three
months ended March 31, 2003 compared with 2002 primarily due to
higher service charges on a larger deposit base, primarily
attributable to deposits acquired through UCB, and higher other
service charges.  Noninterest expense increased
by $36.0 million, or 51%, over 2002 primarily due to higher
staffing and operating costs associated with the larger branch
network discussed above. The provision for credit losses increased
by $1.7 million or 89%, as compared with 2002.

Commercial Bankingsegments net income was $35.5 million in the first quarter,
compared with $12.9 million for the same period in 2002, an increase of 175%.
Net interest income increased by $46.3 million, or 147%, compared with the
first quarter of 2002 primarily due to a larger average loan balance for the quarter,
which is primarily attributable to the UCB acquisition. Noninterest income was up
$9.5 million, or 500%, in the
three months ended March 31, 2003 compared with 2002 due to higher service charges on a larger deposit base, due to UCB, and higher
other service charges. Noninterest expense
increased by $19.4 million, or 185%, over 2002 due to higher
operating costs associated with running a
larger segment after the UCB acquisition. The provision for Credit
Losses decreased by $1 million or 77%, as compared with 2002. A lower provision was required for the three months ended March 31, 2003
compared with 2002 primarily due to the recognition of the recoveries in March 2003 from the arbitration
settlement with UFJ.

Consumer Financesegments net income was $14.6 million in the first quarter,
compared with $11.3 million for the same period in 2002, an increase of 29%.
Net interest income increased by $7.9 million, or 19%, compared with the first
quarter of 2002 primarily due to higher loan volume, particularly in
automobile, recreational vehicle and marine lending, and wider margins. Noninterest income was up $0.2 million, or 8%, in the three
months ended March 31, 2003 compared with 2002 primarily due to
gains on the sale of loans and extension fees. Noninterest expense increased
by $1.1 million, or 8%, over 2002 due to higher staff and
occupancy requirements associated with growth and the UCB acquisition. The provision for credit losses increased
by $1.7 million or 15%, as compared with 2002.

First Hawaiian Bank

Retail Bankingsegments
net income was $23.4 million in the first quarter,
compared with $23.2 million for the same period in 2002, an
increase of 0.9%.
Net interest income decreased by $2.3 million, or 3%, compared with the first
quarter of 2002. This was primarily due to the transfer of loans to the
Commercial Banking Group in April 2002. Noninterest income was up $1.6
million, or 10%, in the three months ended March 31, 2003 compared with 2002
due to higher account analysis fees. Noninterest expense increased by
$0.1 million over 2002. The provision for credit losses decreased by $0.5
million or 23%, as compared with 2002.

Consumersegments net
income was $9.6 million in the first quarter, compared
with $6.8 million for the same period in 2002, an increase of 41%. Net
interest income increased by $2.5 million, or 14%, compared with the first
quarter of 2002 primarily as a result of higher loan volume and a
wider margin. Noninterest income was up $3.0 million, or 51%, in the three
months ended March 31, 2003 compared with 2002, primarily due to higher merchant service income and higher gains
on the sale of loans. Noninterest expense increased by $1.1 million, or
11%, over 2002. The provision for credit losses increased by $0.1
million or 5%, as compared with 2002.

Commercial Bankingsegments net income was $5.1 million in the first quarter,
compared with $4.0 million for the same period in 2002,
an increase of 28%.
Net interest income increased by $1.8 million, or 31%, compared with the first
quarter of 2002 primarily due to the transfer of loans from the
Regional Banking Segment, higher volume, a wider margin and beneficial
change in the loan mix. Noninterest income was up $0.1 million, or 7%, in the
three months ended March 31, 2003 compared with 2002. Noninterest expense
increased by $0.5 million, or 31%, over 2002.

Financial Managementsegments net income was $0.4 million in the first
quarter, compared with $0.8 million for the same period in 2002, a decrease of
50%. Net interest income did not change from the first quarter of 2002.
Noninterest income was down $0.4 million, or 5%, in the three months ended
March 31, 2003 compared with 2002. Noninterest expense increased
by $0.3
million, or 5%, over 2002 primarily due to higher salaries and retirement plan expense.

21



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##### Table of Contents



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

INVESTMENT SECURITIES

Available-for-Sale

The fair value of available-for-sale securities at March 31, 2003 increased by
approximately $1.4 billion, or 43.2%, compared to March 31, 2002 and increased
by approximately $621 million, or 15.9%, compared to December 31, 2002. These
increases are primarily attributable to the purchase of asset-backed
securities, mortgage securities and securities issued by government-sponsored
agencies, including the Government National Mortgage Association (GNMA) and the
Federal National Mortgage Association (FNMA). The purchase of securities
issued directly by the U.S. Treasury and other governmental agencies and
corporations also contributed to the increase.

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:

|                  |  |           |           |              |  |                |           |   |  |   |           |  
|----------------- |  | --------- | --------- | ------------ |  | -------------- | --------- | - |  | - | --------- | -
|                  |  | March 31, |           | December 31, |  | March 31,     
|                  |  | 2003      |           | 2002         |  | 2002          
|                  |  |           |           |              |  |               
|                  |  |           |           |              |  | (in thousands) |           |   |  |  
|Amortized cost    |  | $         | 4,451,712 |              |  | $              | 3,860,297 |   |  | $ | 3,152,914 |  
|Unrealized gains  |  |           | 78,957    |              |  |                | 82,838    |   |  |   | 20,834    |  
|Unrealized losses |  |           | (2,185    | )            |  |                | (2,366    | ) |  |   | (11,826   | )
|                  |  |           |           |              |  |                |           |   |  |   |           |  
|Fair value        |  | $         | 4,528,484 |              |  | $              | 3,940,769 |   |  | $ | 3,161,922 |  
|                  |  |           |           |              |  |                |           |   |  |   |           |  

Gains and losses realized on the sales of available-for-sale investment
securities are determined using the specific identification method. Gross
realized gains and losses on available-for-sale investment securities for the
three months ended March 31, 2003 and 2002 were as follows:

|                      |  |                |       |      |  |   |     |  
|--------------------- |  | -------------- | ----- | ---- |  | - | --- | -
|                      |  | 2003           |       | 2002
|                      |  |                |       |     
|                      |  | (in
thousands)
|Realized gains        |  | $              | 1,892 |      |  | $ | 241 |  
|Realized losses       |  |                |      |      |  |   | (13 | )
|                      |  |                |       |      |  |   |     |  
|Securities gains, net |  | $              | 1,892 |      |  | $ | 228 |  
|                      |  |                |       |      |  |   |     |  

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

LOANS AND LEASES

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

|                                       |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |      |       |  
|-------------------------------------- | ------------ | ----------------------------------- | --------- | -------------- | ---------- | ----------------- | ---- | -------------- | ----- | - | --------- | ---------------------- | ---------- | - | ---- | ---- | ----- | - | --------- | --------- | ---------- |  | ---- | ---- | ----- | -
|                                       |              |                                     |           | March 31, 2003 |            | December 31, 2002 |      | March 31, 2002
|                                       |              |                                     |           |                |            |                   |      |               
|                                       |              |                                     |           | Amount         |            | %                 |      | Amount         |       | % |           | Amount                 |            | %
|                                       |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |  
|                                       |              |                                     |           |                |            |                   |      |                |       |   |           | (dollars in thousands) |            |   |      |      |       |   |           |          
|Commercial, financial and
agricultural |              | $                                   | 4,636,502 |                |            |                   | 19.3 | %              |       | $ | 4,802,581 |                        |            |   | 19.9 | %    |       | $ | 5,079,888 |           |            |  | 21.1 | %   
|Real estate:                           |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       | Commercial   |                                     |           | 4,871,097      |            |                   |      | 20.3           |       |   |           | 4,806,220              |            |   |      | 19.9 |       |   |           | 4,846,071 |            |  |      | 20.1 |      
|                                       | Construction |                                     |           | 944,222        |            |                   |      | 3.9            |       |   |           | 971,861                |            |   |      | 4.0  |       |   |           | 1,161,303 |            |  |      | 4.8  |      
|                                       | Residential: |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |      |      
|                                       |              | Insured, guaranteed or
conventional |           |                | 3,850,906  |                   |      |                | 16.0  |   |           |                        | 4,022,810  |   |      |      | 16.7  |   |           |           | 3,767,094  |  |      |      | 15.7  |  
|                                       |              | Home equity credit lines            |           |                | 716,949    |                   |      |                | 3.0   |   |           |                        | 726,535    |   |      |      | 3.0   |   |           |           | 1,046,134  |  |      |      | 4.3   |  
|                                       |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total real estate loans             |           |                | 10,383,174 |                   |      |                | 43.2  |   |           |                        | 10,527,426 |   |      |      | 43.6  |   |           |           | 10,820,602 |  |      |      | 44.9  |  
|                                       |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|Consumer                               |              |                                     | 6,305,507 |                |            |                   | 26.2 |                |       |   | 6,021,510 |                        |            |   | 25.0 |      |       |   | 5,458,094 |           |            |  | 22.7 |     
|Lease financing                        |              |                                     | 2,344,341 |                |            |                   | 9.7  |                |       |   | 2,398,681 |                        |            |   | 9.9  |      |       |   | 2,326,056 |           |            |  | 9.7  |     
|Foreign                                |              |                                     | 386,743   |                |            |                   | 1.6  |                |       |   | 395,889   |                        |            |   | 1.6  |      |       |   | 386,027   |           |            |  | 1.6  |     
|                                       |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total loans and leases              |           |                | 24,056,267 |                   |      |                | 100.0 | % |           |                        | 24,146,087 |   |      |      | 100.0 | % |           |           | 24,070,667 |  |      |      | 100.0 | %
|                                       |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|Less allowance for credit losses       |              |                                     | 396,049   |                |            |                   |      |                |       |   | 384,081   |                        |            |   |      |      |       |   | 383,003   |           |            |  |      |     
|                                       |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total net loans and leases          |           | $              | 23,660,218 |                   |      |                |       |   |           | $                      | 23,762,006 |   |      |      |       |   |           | $         | 23,687,664 |  |      |      |       |  
|                                       |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|Total loans and leases to:             |              |                                     |           |                |            |                   |      |                |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total assets                        |           |                |            |                   |      |                | 68.9  | % |           |                        |            |   |      |      | 69.5  | % |           |           |            |  |      |      | 72.2  | %
|                                       |              | Total earning assets                |           |                |            |                   |      |                | 83.2  | % |           |                        |            |   |      |      | 84.5  | % |           |           |            |  |      |      | 87.2  | %
|                                       |              | Total deposits                      |           |                |            |                   |      |                | 98.8  | % |           |                        |            |   |      |      | 98.3  | % |           |           |            |  |      |      | 99.9  | %

The loan and lease portfolio is the largest component of earning assets and
accounts for the greatest portion of total interest income. There was a slight
decrease in total loans and leases as of March 31, 2003, as compared to
December 31, 2002.

When comparing the current period to December 31, 2002, decreases of $166
million in Commercial lending and $144 million in Real Estate loans were
substantially offset by an increase of $284 million or 4.7 percent in Consumer
loans. When comparing the current period to March 31, 2002, decreases of $443
million in Commercial lending and $437 million in Real Estate loans were
substantially offset by an increase of $847 million or 15.5% in Consumer
loans. Consumer loans consist primarily of direct and indirect automobile,
recreational vehicle, marine, credit card and unsecured financing.

Our Foreign loans are principally in Guam and Saipan. Foreign loans as of
March 31, 2003 decreased $9.1 million, or 2.3%, from December 31, 2002 and
increased $716 thousand, or 0.2%, over March 31, 2002.

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
March 31, 2003, we did not have a concentration of
loans greater than 10% of total loans which is not otherwise disclosed as a
category of loans as shown in the table above.

23



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##### Table of Contents



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

Off-balance-sheet commitments were as follows at March 31, for the years
indicated:

|                                                 |                              |                |                          |           |      |  |   |           | 
|------------------------------------------------ | ---------------------------- | -------------- | ------------------------ | --------- | ---- |  | - | --------- | 
|                                                 |                              |                | Notional/Contract
Amount
|                                                 |                              |                | 2003                     |           | 2002
|                                                 |                              |                |                          |          
|                                                 |                              | (in thousands)
|Contractual Amounts Which
Represent Credit Risk: |                              |                |                          |           |      |  |   |          
|                                                 | Commitments to extend credit |                | $                        | 7,313,461 |      |  | $ | 8,883,179 | 
|                                                 | Standby letters of credit    |                |                          | 806,596   |      |  |   | 788,565   | 
|                                                 | Commercial letters of credit |                |                          | 78,294    |      |  |   | 56,773    | 

NONPERFORMING ASSETS

Nonperforming assets at March 31, 2003, December 31, 2002 and March 31, 2002
are as follows:

|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |        |   |         |         | 
|------------------------------ | --------------------------------------------------------- |  | -------------------------------------- | ------------------------------------ | - | ---------------------- | ------- | ------------ | - | --------- | ------- | ------ | - | ------- | ------- | 
|                               |                                                           |  |                                        |                                      |   | March 31,              |         | December 31, |   | March 31,
|                               |                                                           |  |                                        |                                      |   | 2003                   |         | 2002         |   | 2002     
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |          
|                               |                                                           |  |                                        |                                      |   | (dollars in thousands)
|Nonperforming Assets:          |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |       
|                               | Nonaccrual:                                               |  |                                        |                                      |   |                        |         |              |   |           |         |        |  
|                               |                                                           |  | Commercial, financial and agricultural |                                      | $ | 129,248                |         |              | $ | 145,222   |         |        | $ | 151,028 |        
|                               |                                                           |  | Real estate:                           |                                      |   |                        |         |              |   |           |         |        |   |         |        
|                               |                                                           |  |                                        | Commercial                           |   |                        | 51,185  |              |   |           | 47,377  |        |   |         | 45,043  | 
|                               |                                                           |  |                                        | Construction                         |   |                        |        |              |   |           |        |        |   |         | 3,000   | 
|                               |                                                           |  |                                        | Residential:                         |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Insured, guaranteed, or conventional |   |                        | 7,909   |              |   |           | 5,460   |        |   |         | 12,094  | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Total real estate loans              |   |                        | 59,094  |              |   |           | 52,837  |        |   |         | 60,137  | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |       
|                               |                                                           |  | Consumer                               |                                      |   | 4,459                  |         |              |   | 4,769     |         |        |   | 3,919   |        
|                               |                                                           |  | Lease financing                        |                                      |   | 13,527                 |         |              |   | 11,532    |         |        |   | 9,900   |        
|                               |                                                           |  | Foreign                                |                                      |   | 8,758                  |         |              |   | 10,088    |         |        |   | 3,968   |        
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Total nonaccrual loans and leases    |   |                        | 215,086 |              |   |           | 224,448 |        |   |         | 228,952 | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |       
|                               | Restructured:                                             |  |                                        |                                      |   |                        |         |              |   |           |         |        |  
|                               |                                                           |  | Commercial, financial and agricultural |                                      |   | 693                    |         |              |   | 698       |         |        |   | 1,502   |        
|                               |                                                           |  | Real estate:                           |                                      |   |                        |         |              |   |           |         |        |   |         |        
|                               |                                                           |  |                                        | Commercial                           |   |                        | 667     |              |   |           | 694     |        |   |         | 1,094   | 
|                               |                                                           |  |                                        | Residential:                         |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Insured, guaranteed, or conventional |   |                        |        |              |   |           |        |        |   |         |        | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Total real estate loans              |   |                        | 667     |              |   |           | 694     |        |   |         | 1,094   | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Total restructured loans and leases  |   |                        | 1,360   |              |   |           | 1,392   |        |   |         | 2,596   | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |       
|                               |                                                           |  |                                        | Total nonperforming loans and leases |   |                        | 216,446 |              |   |           | 225,840 |        |   |         | 231,548 | 
|                               | Other real estate owned and repossessed personal property |  |                                        | 18,545                               |   |                        |         | 19,613       |   |           |         | 24,393 |  
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Total nonperforming assets           |   | $                      | 234,991 |              |   | $         | 245,453 |        |   | $       | 255,941 | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |       
|Past due loans and leases (1): |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |       
|                               | Commercial, financial and agricultural                    |  | $                                      | 11,387                               |   |                        | $       | 9,005        |   |           | $       | 17,432 |  
|                               | Real estate:                                              |  |                                        |                                      |   |                        |         |              |   |           |         |        |  
|                               |                                                           |  |                                        | Commercial                           |   |                        | 5,613   |              |   |           | 2,952   |        |   |         | 1,192   | 
|                               |                                                           |  |                                        | Construction                         |   |                        | 907     |              |   |           |        |        |   |         | 2,217   | 
|                               |                                                           |  |                                        | Residential:                         |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Insured, guaranteed, or conventional |   |                        | 2,046   |              |   |           | 5,082   |        |   |         | 2,347   | 
|                               |                                                           |  |                                        | Home equity credit lines             |   |                        | 737     |              |   |           | 661     |        |   |         | 160     | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |        |   |         |         | 
|                               |                                                           |  |                                        | Total real estate loans              |   |                        | 9,303   |              |   |           | 8,695   |        |   |         | 5,916   | 
|                               |                                                           |  |                                        |                                      |   |                        |         |              |   |           |         |       
|                               | Consumer                                                  |  |                                        | 1,792                                |   |                        |         | 1,984        |   |           |         | 2,603  |  

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##### Table of Contents



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

|                                                                                                                              |                 |                                     |  |                                 |      |                        |        |              |      |           |        |       |      |   |        | 
|----------------------------------------------------------------------------------------------------------------------------- | --------------- | ----------------------------------- |  | ------------------------------- | ---- | ---------------------- | ------ | ------------ | ---- | --------- | ------ | ----- | ---- | - | ------ | 
|                                                                                                                              |                 |                                     |  |                                 |      | March 31,              |        | December 31, |      | March 31,
|                                                                                                                              |                 |                                     |  |                                 |      | 2003                   |        | 2002         |      | 2002     
|                                                                                                                              |                 |                                     |  |                                 |      |                        |        |              |      |          
|                                                                                                                              |                 |                                     |  |                                 |      | (dollars in thousands)
|                                                                                                                              | Lease financing |                                     |  | 393                             |      |                        |        | 232          |      |           |        | 84    |     
|                                                                                                                              | Foreign         |                                     |  | 563                             |      |                        |        | 1,181        |      |           |        | 4,291 |     
|                                                                                                                              |                 |                                     |  |                                 |      |                        |        |              |      |           |        |       |      |   |        | 
|                                                                                                                              |                 |                                     |  | Total past due loans and leases |      | $                      | 23,438 |              |      | $         | 21,097 |       |      | $ | 30,326 | 
|                                                                                                                              |                 |                                     |  |                                 |      |                        |        |              |     
|Nonperforming assets to total loans and leases
and other real estate owned and repossessed
personal property (end of period): |                 |                                     |  |                                 |      |                        |        |              |      |           |        |      
|                                                                                                                              |                 | Excluding past due loans and leases |  |                                 | 0.98 | %                      |        |              | 1.02 | %         |        |       | 1.06 | %
|                                                                                                                              |                 | Including past due loans and leases |  |                                 | 1.07 | %                      |        |              | 1.10 | %         |        |       | 1.19 | %
|Nonperforming assets to total assets (end of period):                                                                         |                 |                                     |  |                                 |      |                        |        |              |      |           |        |      
|                                                                                                                              |                 | Excluding past due loans and leases |  |                                 | 0.67 | %                      |        |              | 0.71 | %         |        |       | 0.77 | %
|                                                                                                                              |                 | Including past due loans and leases |  |                                 | 0.74 | %                      |        |              | 0.77 | %         |        |       | 0.86 | %



|(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.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Nonperforming assets at March 31,
2003 were $235 million, or 0.98%, of total
loans and leases and other real estate owned and repossessed personal property
(OREO), compared to 1.02% at December 31, 2002 and 1.06% at March 31, 2002.
Nonperforming assets at March 31, 2003 were 0.67% of total assets, compared to
0.71% at December 31, 2002 and 0.77% at March 31, 2002.

Nonperforming assets at March 31, 2003 decreased by $10 million, or 4.3%, from
December 31, 2002. The decrease in nonaccrual loans was primarily due to
resolution of problem relationships in commercial lending, partially
offset by increases in nonaccrual real estate loans. Nonperforming assets at March 31, 2003
decreased by $21 million, or 8.2%, from March 31, 2002. The decrease was
primarily attributable to decreases in nonaccrual commercial, financial and
agricultural loans, which were partially offset by increases in
nonaccrual real estate-commercial loans and lease financing. Foreign
nonperforming assets decreased at March 31, 2003 by $1 million or 13.2% from
December 31, 2002, but increased by $5 million, or 120.7% from March 31, 2002,
primarily due to loans in Guam. However, our overall foreign loan portfolio,
composed primarily of loans in Guam and Saipan, represents a relatively small
component (1.6%) of our total loan portfolio at March 31, 2003.

We generally place a loan or lease on nonaccrual status when we believe that
collection of principal or interest has become doubtful or when loans and
leases are 90 days past due as to principal or interest, unless they are well
secured and in the process of collection. We may make an exception to the
general 90-day-past-due rule when the fair value of the collateral exceeds our
recorded investment in the loan 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 and have
demonstrated a sustained period of payment performance or (2) become both well secured
and in the process of collection.

Other than the loans listed, we were not aware of any significant potential
problem loans where possible credit problems of the borrower caused us to
seriously question the borrowers ability to repay the loan under existing
terms. Loans past due 90 days or more and still accruing interest totaled $23
million at March 31, 2003, an increase of $2 million or 11.1%, from December
31, 2002, but a decrease of $7 million, or 22.7%, from March 31, 2002. The
increase at March 31, 2003 compared to December 31, 2002 was primarily due to
real estate-commercial and commercial, financial and agricultural loans. The
decrease at March 31, 2003 compared to March 31, 2002 was primarily due to
commercial, financial and agricultural and foreign loans, partially offset by
real estate-commercial 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.

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##### Table of Contents



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

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    
|                                                                               |                                |                                                      |                                                             |         | March 31,             
|                                                                               |                                |                                                      |                                                             |         |                       
|                                                                               |                                |                                                      |                                                             |         | 2003                   |         | 2002      
|                                                                               |                                |                                                      |                                                             |         |                        |         |           
|                                                                               |                                |                                                      |                                                             |         | (dollars in thousands)
|Loans and leases outstanding (end of period)                                   |                                | $                                                    | 24,056,267                                                  |         |                        | $       | 24,070,667 |        
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|Allowance for credit losses:                                                   |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               | Balance at beginning of period |                                                      | $                                                           | 384,081 |                        |         | $          | 194,654 |       
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               | Allowance purchased            |                                                      |                                                             |        |                        |         |            | 210,000 |       
|                                                                               | Loans and leases charged off:  |                                                      |                                                             |         |                        |         |            |         |       
|                                                                               |                                | Commercial, financial and agricultural               |                                                             |         | 9,257                  |         |            |         | 28,685 |        
|                                                                               |                                | Real estate:                                         |                                                             |         |                        |         |            |         |        |        
|                                                                               |                                |                                                      | Commercial                                                  |         |                        | 123     |            |         |        | 66      |  
|                                                                               |                                |                                                      | Residential                                                 |         |                        | 370     |            |         |        | 394     |  
|                                                                               |                                | Consumer                                             |                                                             |         | 15,303                 |         |            |         | 12,875 |        
|                                                                               |                                | Lease financing                                      |                                                             |         | 6,083                  |         |            |         | 6,033  |        
|                                                                               |                                | Foreign                                              |                                                             |         | 841                    |         |            |         | 475    |        
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               |                                |                                                      | Total loans and leases charged off                          |         |                        | 31,977  |            |         |        | 48,528  |  
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|Recoveries on loans and leases previously
charged off:                         |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               |                                | Commercial, financial and agricultural               |                                                             |         | 16,432                 |         |            |         | 2,724  |        
|                                                                               |                                | Real estate:                                         |                                                             |         |                        |         |            |         |        |        
|                                                                               |                                |                                                      | Commercial                                                  |         |                        | 91      |            |         |        | 130     |  
|                                                                               |                                |                                                      | Construction                                                |         |                        | 34      |            |         |        | 220     |  
|                                                                               |                                |                                                      | Residential                                                 |         |                        | 296     |            |         |        | 202     |  
|                                                                               |                                | Consumer                                             |                                                             |         | 2,747                  |         |            |         | 2,191  |        
|                                                                               |                                | Lease financing                                      |                                                             |         | 1,543                  |         |            |         | 1,252  |        
|                                                                               |                                | Foreign                                              |                                                             |         | 112                    |         |            |         | 151    |        
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               |                                |                                                      | Total recoveries on loans and leases
previously charged off |         |                        | 21,255  |            |         |        | 6,870   |  
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               |                                |                                                      | Net charge-offs                                             |         |                        | (10,722 | )          |         |        | (41,658 | )
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               | Provision for credit losses    |                                                      |                                                             | 22,690  |                        |         |            | 20,007  |       
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               | Balance at end of period       |                                                      | $                                                           | 396,049 |                        |         | $          | 383,003 |       
|                                                                               |                                |                                                      |                                                             |         |                        |         |            |        
|Net loans and leases charged off to average loans
and leases                   |                                |                                                      | 0.18                                                        | %(1)    |                        |         | 1.00       | %(1)   
|Net loans and leases charged off to allowance for
credit losses                |                                |                                                      | 10.83                                                       | %(1)    |                        |         | 44.11      | %(1)   
|Allowance for credit losses to total
loans and leases (end of period)          |                                |                                                      | 1.65                                                        | %       |                        |         | 1.59       | %      
|Allowance for credit losses to nonperforming
loans and leases (end of period): |                                |                                                      |                                                             |         |                        |         |            |        
|                                                                               |                                | Excluding 90 days past due
accruing loans and leases |                                                             |         | 1.83                   | x       |            |         | 1.65   | x      
|                                                                               |                                | Including 90 days past due
accruing loans and leases |                                                             |         | 1.65                   | x       |            |         | 1.46   | x      

(1) Annualized.

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

PROVISION AND ALLOWANCE FOR CREDIT LOSSES, Continued

The provision for credit losses for the first three months of 2003 was $22.7
million, an increase of $2.7 million, or 13.4%, compared to the same period in
2002. The provision for credit losses is based upon our judgment as to the
adequacy of the allowance for credit losses (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 3.9% of total loans
and leases at March 31, 2003), as well as Hawaiian commercial real
estate and agricultural loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  |  | Reduced
Participation in Syndicated National Credits.We are in the
process of exiting from the syndicated national credit and media
finance areas. At
March 31, 2003, the ratio of nonperforming shared national credits
and media finance loans to total shared national credits and media
finance loans outstanding was 13.4%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  |  | 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 59% of our lease
financing portfolio and 16% of our combined lease financing and
consumer loans at March 31, 2003), we obtain third-party insurance
for the estimated residual value of the leased vehicle.

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

PROVISION AND ALLOWANCE FOR CREDIT LOSSES, Continued

Charge-offs were $32.0 million for the three months ended March 31, 2003, a
decrease of $16.6 million, or 34.1%, over the same period in 2002. Charge-offs
were higher in the three months ended March 31, 2002 primarily due to
charge-offs required in late March on the UCB portfolio. These charge-offs
were contested with UFJ and settlement, resulting in $13.6 million of
recoveries, was reached this quarter, as discussed in note 2.

For the three months ended March 31, 2003, recoveries increased by $14.4
million, or 209.4%, compared to the same period in 2002. The increase in
recoveries was primarily in commercial, financial and agricultural loans, due
to the settlement with UFJ discussed above.

Net charge-offs for the three months ended March 31, 2003 were 0.18% of average
loans and leases (annualized) compared to 1.00% (annualized) for the same
period in 2002.

The Allowance increased to 1.83 times nonperforming loans and leases (excluding
90 days or more past due accruing loans and leases) at March 31, 2003 from 1.65
times at March 31, 2002. The increase in the ratio is principally due to a
decrease in nonperforming loans and leases and the higher allowance resulting
from $13.6 million of recoveries recognized from the UFJ settlement.

In our judgment, the Allowance was adequate to absorb losses inherent in the
loan and lease portfolio at March 31, 2003. However, changes in prevailing
economic conditions in our markets could result in changes in the level of
nonperforming assets and charge-offs in the future and, accordingly, changes in
the Allowance. We will continue to closely monitor economic developments and
make necessary adjustments to the Allowance accordingly.

DEPOSITS

Deposits are the largest component of our total liabilities and account for the
greatest portion of total interest expense. At March 31, 2003, total deposits
were $24.3 billion, a decrease of 1% from December 31, 2002, and an increase of
1% over March 31, 2002. The increase was primarily due to the growth in our
customer deposit base and various deposit product programs that we initiated.

During the 12-month period from April 1, 2002 to March 31, 2003, the benchmark
federal funds rate was decreased by 50 basis points contributing to lower
interest rates on deposits.

INCOME TAXES

Our effective income tax rate (exclusive of the tax equivalent adjustment) for
the three months ended March 31, 2003 was 38.8%, as compared to 39.4% for the
same period in 2002.

LIQUIDITY MANAGEMENT

Liquidity refers to our ability to provide sufficient short- and long-term cash
flows to fund operations and to meet obligations and commitments, including
depositor withdrawals and debt service, on a timely basis at reasonable costs.
We achieve our liquidity objectives with both assets and liabilities. We
obtain short-term asset-based liquidity through our investment securities
portfolio and short-term investments that can be readily converted to cash.
These liquid assets consist of cash and due from banks, interest-bearing
deposits in other banks, federal funds sold, securities purchased under
agreements to resell and investment securities. Such assets represented 18.4%
of total assets at March 31, 2003, compared to 17.7% at December 31, 2002.

Intermediate and longer-term asset liquidity is primarily provided by regularly
scheduled maturities and cash flows from our loans and investment securities.
Additional liquidity is available from certain assets that can be sold or
securitized, such as consumer and mortgage loans. We obtain short-term
liability-based liquidity primarily from deposits. Average total deposits for
the three months ended March 31, 2003 were $24.1 billion,
compared to $22.3 billion for the year ended December 31, 2002. Average total deposits funded 70% of average
total assets for the three months ended March 31, 2003 and 71% for the year
ended December 31, 2002.

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

We also obtain short-term liquidity from ready access to regional and national
wholesale funding sources, including issuing our own certificates of deposit,
purchasing federal funds, selling securities under agreements to repurchase,
arranging lines of credit from other banks and obtaining credit facilities from
the Federal Home Loan Banks. Additional information on short-term borrowings
is provided in Note 10 to the Consolidated Financial Statements on pages 55 and
56 of our 2002 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 and the ability to obtain resources from BNP
Paribas.

29



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

CAPITAL

Stockholders equity increased to $3,969 million at March 31, 2003 from $3,867
million at December 31, 2002, an increase of $102 million, or 2.6%.
Stockholders equity at March 31, 2003 increased as compared to March 31, 2002
by $304 million, or 8.3%. The increase between March 31, 2003 and December 31,
2002 was primarily due to net income earned by the Company during the
three-month period. The increase between March 31,2003 and March 31, 2002 was
primarily due to net income earned during the twelve month period and
unrealized gains on investment securities and cash flow hedge derivatives.
These increases were partially offset by a $167 million adjustment to properly
reflect BNP Paribas accounting basis in BancWest following its purchase on
December 19, 2001 of the remaining 55% of outstanding voting stock it did not
already own. This adjustment is reflected as a decrease in the surplus
category of the Companys stockholders equity.

Capital adequacy regulations require the Companys depository institution
subsidiaries to maintain minimum amounts of Tier 1 Capital 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 March 31, 2003 are set forth below:

|                                        |                  |        |        |           |                   |        |            |       |   |        |             |           |                   |  |  |      |   |  |              |           |  |  |  |       |   | 
|--------------------------------------- | ---------------- | ------ | ------ | --------- | ----------------- | ------ | ---------- | ----- | - | ------ | ----------- | --------- | ----------------- |  |  | ---- | - |  | ------------ | --------- |  |  |  | ----- | - | 
|                                        |                  |        |        |           |                   |        |            |       |   |        |             |           |                   |  |  |      |   |  | To Be Well   |          
|                                        |                  |        |        |           |                   |        |            |       |   |        |             |           |                   |  |  |      |   |  | Capitalized  |          
|                                        |                  |        |        |           |                   |        |            |       |   |        |             |           |                   |  |  |      |   |  | Under Prompt |          
|                                        |                  |        |        |           |                   |        |            |       |   |        | For Capital |           | Corrective Action | 
|                                        |                  |        | Actual |           | Adequacy Purposes |        | Provisions |      
|                                        |                  |        |        |           |                   |        |            |      
|(dollars in thousands)                  |                  | Amount |        | Ratio     |                   | Amount |            | Ratio |   | Amount |             | Ratio     |                  
|                                        |                  |        |        |           |                   |        |            |       |   |        |             |           |                   | 
|Tier 1 Capital to
Risk-Weighted
Assets: |                  |        |        |           |                   |        |            |       |   |        |             |           |                   |  |  |      |   |  |              |           |  |  |  |       |  
|                                        | Bank of the West |        | $      | 2,219,050 |                   |        |            | 10.29 | % |        | $           | 862,290   |                   |  |  | 4.00 | % |  | $            | 1,293,435 |  |  |  | 6.00  | % | 
|                                        | First Hawaiian   |        |        | 762,652   |                   |        |            | 11.66 |   |        |             | 261,661   |                   |  |  | 4.00 |   |  |              | 392,491   |  |  |  | 6.00  |   | 
|Total Capital to
Risk-Weighted
Assets:  |                  |        |        |           |                   |        |            |       |   |        |             |           |                   |  |  |      |   |  |              |           |  |  |  |       |  
|                                        | Bank of the West |        | $      | 2,714,230 |                   |        |            | 12.59 | % |        | $           | 1,724,580 |                   |  |  | 8.00 | % |  | $            | 2,155,725 |  |  |  | 10.00 | % | 
|                                        | First Hawaiian   |        |        | 918,808   |                   |        |            | 14.05 |   |        |             | 523,321   |                   |  |  | 8.00 |   |  |              | 654,152   |  |  |  | 10.00 |   | 
|Tier 1 Capital to
Average Assets:       |                  |        |        |           |                   |        |            |       |   |        |             |           |                   |  |  |      |   |  |              |           |  |  |  |       |  
|                                        | Bank of the West |        | $      | 2,219,050 |                   |        |            | 9.48  | % |        | $           | 936,225   |                   |  |  | 4.00 | % |  | $            | 1,170,281 |  |  |  | 5.00  | % | 
|                                        | First Hawaiian   |        |        | 762,652   |                   |        |            | 9.38  |   |        |             | 325,076   |                   |  |  | 4.00 |   |  |              | 406,345   |  |  |  | 5.00  |   | 

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

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

30



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

SPECIAL PURPOSE ENTITIES

A special purpose entity (SPE) is a separate legal entity created by a
sponsor to carry out a specified purpose. We are involved in three special
purpose entities: BWE Trust and FH Trust are both fully consolidated
subsidiaries of BancWest Corporation. The purpose of these entities is to
allow for the issuance of capital securities that qualify for inclusion in Tier
1 regulatory capital. We have issued to BWE Trust and FH Trust junior
subordinated deferrable interest debentures in return for either capital
securities, which we then issued to the public, in the case of BWE Trust, or
the proceeds from capital securities that were issued from FH Trust. We report
the debt issued to BWE Trust and FH Trust on our Consolidated Balance Sheets as
Guaranteed preferred beneficial interests in Companys junior subordinated
debentures. We include the interest payments related to these debentures on
our Consolidated Statements of Income and Consolidated Statements of Cash Flows
as interest expense on long-term debt.

REFIRST, Inc. is an SPE that was created by a nonrelated third party to
construct, finance and hold title to our administrative headquarters building
in Honolulu, First Hawaiian Center (FHC). We entered into a noncancelable
operating lease for FHC with REFIRST, Inc. that terminates on December 1, 2003.
Under current accounting guidance, we do not need to consolidate REFIRST, Inc.
into our Consolidated Financial Statements. However, generally accepted
accounting principles regarding the consolidation of REFIRST, Inc. into our
Consolidated Financial Statements are set to change upon the implementation in
July 2003 of FASB Interpretation No. 46 (FIN No. 46), Consolidation of
Variable Interest Entities  An Interpretation of ARB No. 51. FIN No. 46
establishes new guidance on the accounting and reporting for the consolidation
of variable interest entities. The principal objective of FIN No. 46 is to
require the primary beneficiary of a variable interest entity to consolidate
the variable interest entitys assets, liabilities and results of operations in
the entitys own financial statements. Accordingly, FIN No. 46 requires the
consolidation of REFIRST, Inc. Upon implementation of FIN No. 46, FHC and the
related notes and equity for its financing will be included in our Consolidated
Balance Sheets. In addition, the depreciation expense of FHC and interest
expense on the financing will be included on our Consolidated Statements of
Income and Consolidated Statements Cash Flows on a prospective basis. The
provisions of FIN No. 46 require us to record a cumulative effect of an
accounting change upon its implementation. The amount of such cumulative
effect has not been quantified. We have communicated to FHCs owners our
intent to purchase it at the end of the lease term for a purchase price of
approximately $194 million, which is equal to the outstanding notes and equity.
For the three months ended March 31, 2003, we recorded approximately $1.9
million in occupancy expense for the lease of FHC.

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BancWest Corporation and Subsidiaries
QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK




Item 3.      Quantitative and Qualitative Disclosures About Market Risk

INTEREST RATE RISK MEASUREMENT AND MANAGEMENT

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

The Asset/Liability Committees of the Company and 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 commitments to purchase and sell foreign
currencies and mortgage-backed securities and certain interest rates swaps and
options, interest rate derivatives are not entered into for trading purposes.

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

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

The projected impact of 100 basis-point incremental increases and decreases in
interest rates on the Companys consolidated net interest income over the 12
months beginning April 1, 2003 and January 1, 2003 is shown below:

|                      |  |      |         |     |  |     |         |      |  |     |         |   |  |   |         |   |  |   |         |   
|--------------------- |  | ---- | ------- | --- |  | --- | ------- | ---- |  | --- | ------- | - |  | - | ------- | - |  | - | ------- | --
|(dollars in millions) |  | + 3% |         | +2% |  | +1% |         | Flat |  | -1%
|                      |  |      |         |     |  |     |         |      |  |    
|April 1, 2003         |  |      |         |     |  |     |         |      |  |     |         |   |  |   |         |   |  |   |         |   
|Net Interest Income   |  | $    | 1,305.2 |     |  | $   | 1,299.2 |      |  | $   | 1,289.1 |   |  | $ | 1,278.3 |   |  | $ | 1,244.3 |   
|Difference from flat  |  |      | 26.9    |     |  |     | 20.9    |      |  |     | 10.8    |   |  |   |        |   |  |   | (34.0   | ) 
|% variance            |  |      | 2.1     | %   |  |     | 1.6     | %    |  |     | 0.8     | % |  |   |        | % |  |   | (2.7    | )%
|January 1, 2003       |  |      |         |     |  |     |         |      |  |     |         |   |  |   |         |   |  |   |         |   
|Net Interest Income   |  | $    | 1,308.2 |     |  | $   | 1,303.3 |      |  | $   | 1,294.3 |   |  | $ | 1,280.6 |   |  | $ | 1,246.3 |   
|Difference from flat  |  |      | 27.6    |     |  |     | 22.7    |      |  |     | 13.7    |   |  |   |        |   |  |   | (34.3   | ) 
|% variance            |  |      | 2.2     | %   |  |     | 1.8     | %    |  |     | 1.1     | % |  |   |        | % |  |   | (2.7    | )%

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.

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

SIGNIFICANT ASSUMPTIONS UTILIZED AND INHERENT LIMITATIONS

The net interest income changes for each interest rate scenario presented above
include assumptions based on accelerating or
decelerating mortgage and installment loan prepayments in declining or rising
scenarios, respectively, and adjusting deposit levels and mix in the different
interest rate scenarios. The magnitude of changes to both areas in turn are
based upon analyses of customers historic behavior in differing rate
environments. However, these analyses may differ from actual future customer
behavior. For example, actual prepayments may differ from current assumptions
as prepayments are affected by many variables which cannot be predicted with
certainty (e.g. prepayments of mortgages may differ on fixed and adjustable
loans depending upon current interest rates, expectations of future interest
rates, availability of refinancing, economic benefit to borrower, financial
viability of borrower, etc.).

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

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##### Table of Contents



BancWest Corporation and Subsidiaries
CONTROLS AND PROCEDURES




Item 4.      Controls and Procedures

Within the 90 days prior to the filing date of this report, the Company carried
out an evaluation, under the supervision and with the participation of the
Companys management, including the Companys chairman and chief executive
officer and its chief financial officer, of the effectiveness of the design and
operation of the Companys disclosure controls and procedures pursuant to
Exchange Act Rule 13a-14. Based upon that evaluation, its chairman and chief
executive officer and its chief financial officer concluded that the Companys
disclosure controls and procedures are effective in timely alerting them to
material information relating to the Company (including its consolidated
subsidiaries) required to be included in the Companys periodic SEC filings.

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




PART II. OTHER INFORMATION




|Item 6. |  | Exhibits and Reports on
Form 8-K                                                        
|------- |  | ----------------------------------------------------------------------------------------
|        |  |                                                                                         
|        |  | The Exhibits listed below are filed or incorporated by reference as part of this Report.
|        |  |                                                                                         
|        |  | (a) Exhibits                                                                            

| |  |  |    |                                           
| |  |  | -- | ------------------------------------------
| |  |  | 12 | Statement regarding computation of ratios.

| |  |                         |      
| |  | ----------------------- | -----
| |  | (b) Reports on Form 8-K | None.

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##### Table of Contents






SIGNATURE

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

|                   |  |                                           |  |                                
|------------------ |  | ----------------------------------------- |  | -------------------------------
|                   |  | BANCWEST CORPORATION
        (Registrant)
|                   |  |                                           |  |                                
|Date: May 14, 2003 |  | By                                        |  | /s/ Douglas C. Grigsby         
|                   |  |                                           |  |                                
|                   |  |                                           |  | (Douglas C. Grigsby            
|                   |  |                                           |  | Executive Vice President, Chief
|                   |  |                                           |  | Financial Officer and Treasurer
|                   |  |                                           |  | (principal financial officer)  

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##### Table of Contents






CERTIFICATION

I, Walter A. Dods, Jr., certify that:

1.     I have reviewed this quarterly report on Form 10-Q of BancWest
Corporation;

2.     Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:



| |                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a)     Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;



| |                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | b)     Evaluated the effectiveness of the registrants disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the Evaluation Date); and



| |                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | c)     Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5.     The registrants other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrants auditors and the audit
committee of the registrants board of directors (or persons performing the
equivalent functions):



| |                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a)     All significant deficiencies in the design or operation of
internal controls which could adversely affect the registrants ability
to record, process, summarize and report financial data and have
identified for the registrants auditors any material weaknesses in
internal controls; and



| |                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| | b)     Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants internal
controls; and

6.     The registrants other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent
to the date of our most recent evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.

/s/ Walter A. Dods, Jr.Name: Walter A. Dods, Jr.
Title: Chairman and Chief Executive Officer

Date: May 14, 2003

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##### Table of Contents

\

CERTIFICATION

I, Douglas C. Grigsby, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of BancWest
Corporation;

2.     Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:



| |                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a)     Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;



| |                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | b)     Evaluated the effectiveness of the registrants disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the Evaluation Date); and



| |                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | c)     Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5.     The registrants other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrants auditors and the audit
committee of the registrants board of directors (or persons performing the
equivalent functions):



| |                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a)     All significant deficiencies in the design or operation of
internal controls which could adversely affect the registrants ability
to record, process, summarize and report financial data and have
identified for the registrants auditors any material weaknesses in
internal controls; and



| |                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| | b)     Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants internal
controls; and

6.     The registrants other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent
to the date of our most recent evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.

/s/ Douglas C. GrigsbyName: Douglas C. Grigsby
Title: Executive Vice President, Chief Financial Officer and Treasurer

Date: May 14, 2003

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EXHIBIT INDEX

|            |  |                                           
|----------- |  | ------------------------------------------
|Exhibit No. |  | Exhibit                                   
|            |  |                                           
|12          |  | Statement regarding computation of ratios.