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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549





FORM 10-Q

(Mark One)

þ
    
    QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended June 30, 2003


OR



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

For the transition period from                      to


Commission file number 0-7949




BANCWEST CORPORATION

(Exact name of registrant as specified in its charter)





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

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




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

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 o  Noo

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

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

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



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TABLE OF CONTENTS



|                              |                                                                                               |                                                                                     |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF INCOME                                                  
|                              |                                                                                               | CONSOLIDATED BALANCE SHEETS                                                        
|                              |                                                                                               | CONSOLIDATED BALANCE SHEETS, Continued                                             
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
|                              |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS                                              
|                              |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                         
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                              |                                                                                               | OVERVIEW                                                                           
|                              |                                                                                               | NEW PRONOUNCEMENTS                                                                 
|                              |                                                                                               | FORWARD-LOOKING STATEMENTS                                                         
|                              |                                                                                               | MONETARY POLICY AND ECONOMIC CONDITIONS                                            
|                              |                                                                                               | CRITICAL ACCOUNTING POLICIES                                                       
|                              |                                                                                               | CONSOLIDATED FINANCIAL HIGHLIGHTS                                                  
|                              |                                                                                               | NET INTEREST INCOME                                                                
|                              |                                                                                               | NONINTEREST INCOME                                                                 
|                              |                                                                                               | NONINTEREST EXPENSE                                                                
|                              |                                                                                               | OPERATING SEGMENT RESULTS                                                          
|                              |                                                                                               | INVESTMENT SECURITIES                                                              
|                              |                                                                                               | LOANS AND LEASES                                                                   
|                              |                                                                                               | NONPERFORMING ASSETS                                                               
|                              |                                                                                               | PROVISION AND ALLOWANCE FOR CREDIT LOSSES                                          
|                              |                                                                                               | DEPOSITS                                                                           
|                              |                                                                                               | LIQUIDITY MANAGEMENT                                                               
|                              |                                                                                               | CAPITAL                                                                            
|                              | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|                              | Item 4. Controls and Procedures                                                              
|PART II. OTHER INFORMATION   
|                              | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURE                    
|EXHIBIT INDEX                
|EXHIBIT 10.8                 
|EXHIBIT 12                   
|EXHIBIT 31.1                 
|EXHIBIT 31.2                 



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BANCWEST CORPORATION

FORM 10-Q
June 30, 2003

INDEX

|                                                                                                                        |                                                                                                                                     |                               |    |      |  | 
|----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | -- | ---- |  | 
|                                                                                                                        |                                                                                                                                     |                               |    | Page
|                                                                                                                        |                                                                                                                                     |                               |    |     
|                                                                                                                        |                                                                                                                                     | PART I. FINANCIAL INFORMATION |    |      |  | 
|Item 1. Financial Statements(Unaudited)                                                                                 |                                                                                                                                     |                               | 2  |     
|                                                                                                                        | Consolidated Statements of Income for the three and six months ended June 30, 2003 and 2002                                         |                               |    | 2    | 
|                                                                                                                        | Consolidated Balance Sheets at June 30, 2003, December 31, 2002 and June 30, 2002                                                   |                               |    | 3    | 
|                                                                                                                        | Consolidated Statements of Changes in Stockholders Equity and Comprehensive Income
for the six months ended June 30, 2003 and 2002 |                               |    | 5    | 
|                                                                                                                        | Consolidated Statements of Cash Flows for the six months ended June 30, 2003
and 2002                                               |                               |    | 6    | 
|                                                                                                                        | Notes to Consolidated Financial Statements                                                                                          |                               |    | 7    | 
|Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations                           |                                                                                                                                     |                               | 16 |     
|                                                                                                                        | Overview                                                                                                                            |                               |    | 16   | 
|                                                                                                                        | New Pronouncements                                                                                                                  |                               |    | 16   | 
|                                                                                                                        | Forward
Looking Statements                                                                                                          |                               |    | 17   | 
|                                                                                                                        | Monetary Policy and Economic Conditions                                                                                             |                               |    | 17   | 
|                                                                                                                        | Critical Accounting Policies                                                                                                        |                               |    | 18   | 
|                                                                                                                        | Consolidated Financial Highlights                                                                                                   |                               |    | 19   | 
|                                                                                                                        | Net Interest Income                                                                                                                 |                               |    | 20   | 
|                                                                                                                        | Noninterest Income                                                                                                                  |                               |    | 23   | 
|                                                                                                                        | Noninterest Expense                                                                                                                 |                               |    | 23   | 
|                                                                                                                        | Operating Segment Results                                                                                                           |                               |    | 24   | 
|                                                                                                                        | Investment Securities                                                                                                               |                               |    | 27   | 
|                                                                                                                        | Loans and Leases                                                                                                                    |                               |    | 28   | 
|                                                                                                                        | Nonperforming Assets                                                                                                                |                               |    | 30   | 
|                                                                                                                        | Provision and Allowance for Credit Losses                                                                                           |                               |    | 32   | 
|                                                                                                                        | Deposits                                                                                                                            |                               |    | 34   | 
|                                                                                                                        | Liquidity Management                                                                                                                |                               |    | 34   | 
|                                                                                                                        | Capital                                                                                                                             |                               |    | 34   | 
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                      |                                                                                                                                     |                               | 36 |     
|Item 4. Controls and Procedures                                                                                         |                                                                                                                                     |                               | 38 |     
|                                                                                                                        |                                                                                                                                     | PART II. OTHER INFORMATION    |    |      |  | 
|Item 6. Exhibits and Reports on Form 8-K                                                                                |                                                                                                                                     |                               | 38 |     
|SIGNATURE                                                                                                               |                                                                                                                                     |                               | 39 |     
|EXHIBIT INDEX                                                                                                           |                                                                                                                                     |                               | 40 |     
|Exhibit 10.8 Amendment No. 2 to BancWest Corporation Supplemental Executive Retirement Plan, effective
November 1, 2002 |                                                                                                                                     |                               |    |     
|Exhibit 12    Statement Regarding Computation of Ratios                                                                 |                                                                                                                                     |                               |    |     
|Exhibit 31    Certifications                                                                                            |                                                                                                                                     |                               |    |     

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

1



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PART I. FINANCIAL
INFORMATION

Item 1. Financial Statements




BancWest Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME(Unaudited)

|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |         | 
|------------------------------------ | ----------------------------------------------------- | - | --------------------------- | ------- | ------------------------- | - | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | 
|                                     |                                                       |   | Three Months Ended June 30, |         | Six Months Ended June 30,
|                                     |                                                       |   |                             |         |                          
|                                     |                                                       |   | 2003                        |         | 2002                      |   | 2003    |         | 2002
|                                     |                                                       |   |                             |         |                           |   |         |         |     
|                                     |                                                       |   | (in thousands)             
|Interest income                      |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Interest and fees on loans           |                                                       | $ | 339,864                     |         |                           | $ | 370,008 |         |      | $ | 678,123 |         |  | $ | 626,237 |        
|Lease financing income               |                                                       |   | 33,314                      |         |                           |   | 36,240  |         |      |   | 69,342  |         |  |   | 72,966  |        
|Interest on investment securities:   |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|                                     | Taxable interest income                               |   |                             | 44,071  |                           |   |         | 39,699  |      |   |         | 85,868  |  |   |         | 73,961  | 
|                                     | Exempt from Federal income taxes                      |   |                             | 183     |                           |   |         | 190     |      |   |         | 337     |  |   |         | 234     | 
|Other interest income                |                                                       |   | 1,932                       |         |                           |   | 1,553   |         |      |   | 3,170   |         |  |   | 3,576   |        
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|                                     | Total interest income                                 |   |                             | 419,364 |                           |   |         | 447,690 |      |   |         | 836,840 |  |   |         | 776,974 | 
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Interest expense                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Deposits                             |                                                       |   | 47,724                      |         |                           |   | 78,778  |         |      |   | 100,871 |         |  |   | 142,407 |        
|Short-term borrowings                |                                                       |   | 3,538                       |         |                           |   | 10,263  |         |      |   | 7,234   |         |  |   | 16,056  |        
|Long-term debt                       |                                                       |   | 46,777                      |         |                           |   | 36,755  |         |      |   | 92,171  |         |  |   | 72,137  |        
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|                                     | Total interest expense                                |   |                             | 98,039  |                           |   |         | 125,796 |      |   |         | 200,276 |  |   |         | 230,600 | 
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|                                     | Net interest income                                   |   |                             | 321,325 |                           |   |         | 321,894 |      |   |         | 636,564 |  |   |         | 546,374 | 
|Provision for credit losses          |                                                       |   | 18,860                      |         |                           |   | 22,902  |         |      |   | 41,550  |         |  |   | 42,909  |        
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|                                     | Net interest income after provision for
credit losses |   |                             | 302,465 |                           |   |         | 298,992 |      |   |         | 595,014 |  |   |         | 503,465 | 
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Noninterest income                   |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Service charges on deposit accounts  |                                                       |   | 38,561                      |         |                           |   | 36,561  |         |      |   | 75,590  |         |  |   | 62,535  |        
|Trust and investment services income |                                                       |   | 9,858                       |         |                           |   | 10,252  |         |      |   | 19,365  |         |  |   | 18,392  |        
|Other service charges and fees       |                                                       |   | 39,230                      |         |                           |   | 31,912  |         |      |   | 74,845  |         |  |   | 55,410  |        
|Securities gains, net                |                                                       |   | 1,466                       |         |                           |   | 456     |         |      |   | 3,358   |         |  |   | 684     |        
|Other                                |                                                       |   | 11,459                      |         |                           |   | 9,248   |         |      |   | 22,250  |         |  |   | 14,032  |        
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|                                     | Total noninterest income                              |   |                             | 100,574 |                           |   |         | 88,429  |      |   |         | 195,408 |  |   |         | 151,053 | 
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Noninterest expense                  |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Salaries and wages                   |                                                       |   | 81,977                      |         |                           |   | 86,463  |         |      |   | 166,639 |         |  |   | 146,557 |        
|Employee benefits                    |                                                       |   | 39,390                      |         |                           |   | 35,675  |         |      |   | 77,036  |         |  |   | 59,157  |        
|Occupancy expense                    |                                                       |   | 22,594                      |         |                           |   | 23,495  |         |      |   | 44,914  |         |  |   | 39,109  |        
|Outside services                     |                                                       |   | 18,274                      |         |                           |   | 19,770  |         |      |   | 35,841  |         |  |   | 33,152  |        
|Intangible amortization              |                                                       |   | 5,764                       |         |                           |   | 5,763   |         |      |   | 11,527  |         |  |   | 8,520   |        
|Equipment expense                    |                                                       |   | 12,437                      |         |                           |   | 14,480  |         |      |   | 23,593  |         |  |   | 22,209  |        
|Restructuring and integration costs  |                                                       |   |                            |         |                           |   | 2,738   |         |      |   |        |         |  |   | 8,753   |        
|Other                                |                                                       |   | 49,353                      |         |                           |   | 40,436  |         |      |   | 90,899  |         |  |   | 70,461  |        
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|                                     | Total noninterest expense                             |   |                             | 229,789 |                           |   |         | 228,820 |      |   |         | 450,449 |  |   |         | 387,918 | 
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Income before income taxes           |                                                       |   | 173,250                     |         |                           |   | 158,601 |         |      |   | 339,973 |         |  |   | 266,600 |        
|Provision for income taxes           |                                                       |   | 65,588                      |         |                           |   | 62,023  |         |      |   | 130,230 |         |  |   | 104,605 |        
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        
|Net income                           |                                                       | $ | 107,662                     |         |                           | $ | 96,578  |         |      | $ | 209,743 |         |  | $ | 161,995 |        
|                                     |                                                       |   |                             |         |                           |   |         |         |      |   |         |         |  |   |         |        

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

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BancWest Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS(Unaudited)

|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |            |            | 
|------------------------------------------------------------------------------------- | -------------------------------- | ------------------- | ---------- | -------------- | ---------- | ------------ | ---------- | ---------- | ---------- | - | ---------- | ---------- | ---------- | 
|                                                                                      |                                  |                     |            | June 30,       |            | December 31, |            | June 30,  
|                                                                                      |                                  |                     |            | 2003           |            | 2002         |            | 2002      
|                                                                                      |                                  |                     |            |                |            |              |            |           
|                                                                                      |                                  |                     |            | (in thousands)
|Assets                                                                                |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Cash and due from banks                                                               |                                  | $                   | 1,501,846  |                |            | $            | 1,761,261  |            |            | $ | 1,457,969  |           
|Interest-bearing deposits in other banks                                              |                                  |                     | 54,109     |                |            |              | 2,098      |            |            |   | 169,263    |           
|Federal funds sold and securities purchased under
agreements to resell                |                                  |                     | 286,600    |                |            |              | 430,056    |            |            |   | 322,175    |           
|Trading assets                                                                        |                                  |                     | 64,173     |                |            |              | 43,430     |            |            |   | 36,247     |           
|Available-for-sale investment securities                                              |                                  |                     | 5,143,855  |                |            |              | 3,940,769  |            |            |   | 3,433,738  |           
|Loans held for sale                                                                   |                                  |                     | 60,063     |                |            |              | 85,274     |            |            |   | 42,405     |           
|Loans and leases:                                                                     |                                  |                     |            |                |            |              |            |            |            |   |            |           
|                                                                                      | Loans and leases                 |                     |            | 25,008,420     |            |              |            | 24,146,087 |            |   |            | 24,120,405 |           
|                                                                                      | Less allowance for credit losses |                     |            | 391,518        |            |              |            | 384,081    |            |   |            | 387,272    |           
|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Net loans and leases                                                                  |                                  |                     | 24,616,902 |                |            |              | 23,762,006 |            |            |   | 23,733,133 |           
|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Premises and equipment, net                                                           |                                  |                     | 390,218    |                |            |              | 380,272    |            |            |   | 400,294    |           
|Customers acceptance liability                                                       |                                  |                     | 32,567     |                |            |              | 25,945     |            |            |   | 15,632     |           
|Core deposit intangible, net                                                          |                                  |                     | 198,884    |                |            |              | 210,411    |            |            |   | 221,938    |           
|Goodwill                                                                              |                                  |                     | 3,226,851  |                |            |              | 3,229,200  |            |            |   | 3,384,904  |           
|Other real estate owned and repossessed personal property                             |                                  |                     | 18,049     |                |            |              | 19,613     |            |            |   | 22,566     |           
|Other assets                                                                          |                                  |                     | 853,569    |                |            |              | 858,932    |            |            |   | 742,445    |           
|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Total assets                                                                          |                                  | $                   | 36,447,686 |                |            | $            | 34,749,267 |            |            | $ | 33,982,709 |           
|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Liabilities and Stockholders Equity                                                  |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Deposits:                                                                             |                                  |                     |            |                |            |              |            |            |            |   |            |           
|                                                                                      | Domestic:                        |                     |            |                |            |              |            |            |            |   |            |            |           
|                                                                                      |                                  | Interest-bearing    |            | $              | 16,934,857 |              |            | $          | 16,720,767 |   |            | $          | 17,068,061 | 
|                                                                                      |                                  | Noninterest-bearing |            |                | 7,363,849  |              |            |            | 7,144,929  |   |            |            | 6,300,200  | 
|                                                                                      | Foreign                          |                     |            | 736,997        |            |              |            | 691,783    |            |   |            | 740,738    |           
|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Total deposits                                                                        |                                  |                     | 25,035,703 |                |            |              | 24,557,479 |            |            |   | 24,108,999 |           
|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Federal funds purchased and securities sold under
agreements to repurchase            |                                  |                     | 1,386,713  |                |            |              | 791,476    |            |            |   | 940,415    |           
|Short-term borrowings                                                                 |                                  |                     | 1,062,819  |                |            |              | 733,274    |            |            |   | 1,690,115  |           
|Acceptances outstanding                                                               |                                  |                     | 32,567     |                |            |              | 25,945     |            |            |   | 15,632     |           
|Long-term debt                                                                        |                                  |                     | 3,519,174  |                |            |              | 3,376,947  |            |            |   | 2,087,635  |           
|Guaranteed preferred beneficial interests in Companys
junior subordinated debentures |                                  |                     | 262,951    |                |            |              | 259,191    |            |            |   | 260,583    |           
|Other liabilities                                                                     |                                  |                     | 1,060,109  |                |            |              | 1,137,473  |            |            |   | 1,079,851  |           
|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |           
|Total liabilities                                                                     |                                  | $                   | 32,360,036 |                |            | $            | 30,881,785 |            |            | $ | 30,183,230 |           
|                                                                                      |                                  |                     |            |                |            |              |            |            |            |   |            |           

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)

|                                           |                                                                                                                                                                                                                                                                             |                                             |            |                                       |           |              |            |          |           |   |            |     |           | 
|------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------- | ---------- | ------------------------------------- | --------- | ------------ | ---------- | -------- | --------- | - | ---------- | --- | --------- | 
|                                           |                                                                                                                                                                                                                                                                             |                                             |            | June 30,                              |           | December 31, |            | June 30,
|                                           |                                                                                                                                                                                                                                                                             |                                             |            | 2003                                  |           | 2002         |            | 2002    
|                                           |                                                                                                                                                                                                                                                                             |                                             |            |                                       |           |              |            |         
|                                           |                                                                                                                                                                                                                                                                             |                                             |            | (in thousands, except per share data)
|Commitments and contingent liabilities     |                                                                                                                                                                                                                                                                             |                                             |            |                                       |           |              |            |          |           |   |            |    
|Stockholders equity:                      |                                                                                                                                                                                                                                                                             |                                             |            |                                       |           |              |            |          |           |   |            |    
|                                           | Class A common stock, par value $.01 per share at June 30, 2003,
December 31, 2002 and June 30, 2002
Authorized - 150,000,000 shares at June 30, 2003, December 31,
2002 and June 30, 2002
Issued - 85,759,123 shares at June 30, 2003, December 31, 2002 and
June 30, 2002 |                                             | $          | 858                                   |           |              | $          | 858      |           |   | $          | 858 |          
|                                           |                                                                                                                                                                                                                                                                             | Surplus                                     |            |                                       | 3,419,927 |              |            |          | 3,419,927 |   |            |     | 3,587,403 | 
|                                           |                                                                                                                                                                                                                                                                             | Retained earnings                           |            |                                       | 579,377   |              |            |          | 369,634   |   |            |     | 170,297   | 
|                                           |                                                                                                                                                                                                                                                                             | Accumulated other comprehensive income, net |            |                                       | 87,488    |              |            |          | 77,063    |   |            |     | 40,921    | 
|                                           |                                                                                                                                                                                                                                                                             |                                             |            |                                       |           |              |            |          |           |   |            |    
|Total stockholders equity                 |                                                                                                                                                                                                                                                                             |                                             | 4,087,650  |                                       |           |              | 3,867,482  |          |           |   | 3,799,479  |    
|                                           |                                                                                                                                                                                                                                                                             |                                             |            |                                       |           |              |            |          |           |   |            |    
|Total liabilities and stockholders equity |                                                                                                                                                                                                                                                                             | $                                           | 36,447,686 |                                       |           | $            | 34,749,267 |          |           | $ | 33,982,709 |    
|                                           |                                                                                                                                                                                                                                                                             |                                             |            |                                       |           |              |            |          |           |   |            |     |          

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

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##### Table of Contents






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

|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |         |         | 
|-------------------------------- | ----------------------------------------------------------------------------------------------------------- | -------------------- | ---------- | --------------------------------- | - | ------ | --- | ------- | - | -------- | --------- | ------------- | - | ----- | ------- | ------- | ------- | - | ------ | ----------- | ------ | - | --------- | ------- | ------- | 
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        | Accumulated |        |   |           |        
|                                 |                                                                                                             |                      |            | Class A                           |   |        |     |         |   |          |           |               |   | Other |         |         |         |  
|                                 |                                                                                                             |                      |            | Common Stock                      |   |        |     |         |   | Retained |           | Comprehensive |   |       |         |        
|                                 |                                                                                                             |                      |            | Shares                            |   | Amount |     | Surplus |   | Earnings |           | Income, net   |   | Total
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |      
|                                 |                                                                                                             |                      |            | (in thousands, except share data)
|Balance, December 31, 2002       |                                                                                                             |                      | 85,759,123 |                                   |   | $      | 858 |         |   | $        | 3,419,927 |               |   | $     | 369,634 |         |         | $ | 77,063 |             |        | $ | 3,867,482 |        
|Comprehensive income:            |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|                                 | Net income                                                                                                  |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         | 209,743 |         |   |        |            |        |   |           | 209,743 |        
|                                 | Net unrealized gain on investment
securities available for sale, net of tax
and reclassification adjustment |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         |        |         |   |        | 5,865       |        |   |           | 5,865   |        
|                                 | Net unrealized gain on cash-flow
derivative hedges, net of tax and
reclassification adjustment              |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         |        |         |   |        | 4,560       |        |   |           | 4,560   |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|                                 |                                                                                                             | Comprehensive income |            |                                   |  |        |     |         |  |          |           |               |  |       |         |         | 209,743 |   |        |             | 10,425 |   |           |         | 220,168 | 
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|Balance, June 30, 2003           |                                                                                                             |                      | 85,759,123 |                                   |   | $      | 858 |         |   | $        | 3,419,927 |               |   | $     | 579,377 |         |         | $ | 87,488 |             |        | $ | 4,087,650 |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|Balance, December 31, 2001       |                                                                                                             |                      | 56,074,874 |                                   |   | $      | 561 |         |   | $        | 1,985,275 |               |   | $     | 8,302   |         |         | $ | 7,782  |             |        | $ | 2,001,920 |        
|Comprehensive income:            |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|                                 | Net income                                                                                                  |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         | 161,995 |         |   |        |            |        |   |           | 161,995 |        
|                                 | Net unrealized gain on investment
securities available for sale, net of tax
and reclassification adjustment |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         |        |         |   |        | 21,946      |        |   |           | 21,946  |        
|                                 | Net unrealized gain on cash-flow
derivative hedges, net of tax and
reclassification adjustment              |                      |            |                                  |   |        |     |        |   |          |           |              |   |       |         |        |         |   |        | 11,193      |        |   |           | 11,193  |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|                                 |                                                                                                             | Comprehensive income |            |                                   |  |        |     |         |  |          |           |               |  |       |         |         | 161,995 |   |        |             | 33,139 |   |           |         | 195,134 | 
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|Issuance of Class A common stock |                                                                                                             |                      | 29,684,249 |                                   |   |        | 297 |         |   |          | 1,599,703 |               |   |       |        |         |         |   |       |             |        |   | 1,600,000 |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|Discounted Share Purchase Plan   |                                                                                                             |                      |           |                                   |   |        |    |         |   |          | 2,425     |               |   |       |        |         |         |   |       |             |        |   | 2,425     |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        
|Balance, June 30, 2002           |                                                                                                             |                      | 85,759,123 |                                   |   | $      | 858 |         |   | $        | 3,587,403 |               |   | $     | 170,297 |         |         | $ | 40,921 |             |        | $ | 3,799,479 |        
|                                 |                                                                                                             |                      |            |                                   |   |        |     |         |   |          |           |               |   |       |         |         |         |   |        |             |        |   |           |        

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

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##### Table of Contents






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

|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |            |         |  
|------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | ---------- | ------------------------- | ------- | ---- | ---------- | ---------- | ------- | -
|                                                                         |                                                                                                       |                                                         |            | Six Months Ended June 30,
|                                                                         |                                                                                                       |                                                         |            |                          
|                                                                         |                                                                                                       |                                                         |            | 2003                      |         | 2002
|                                                                         |                                                                                                       |                                                         |            |                           |         |     
|                                                                         |                                                                                                       |                                                         |            | (in thousands)           
|Cash flows from operating activities:                                    |                                                                                                       |                                                         |            |                           |         |      |            |           
|                                                                         | Net income                                                                                            |                                                         | $          | 209,743                   |         |      | $          | 161,995    |        
|                                                                         | Adjustments to reconcile net income to net cash provided by operating activities:                     |                                                         |            |                           |         |      |            |            |        
|                                                                         |                                                                                                       | Provision for credit losses                             |            |                           | 41,550  |      |            |            | 42,909  |  
|                                                                         |                                                                                                       | Depreciation and amortization                           |            |                           | 36,387  |      |            |            | 31,017  |  
|                                                                         |                                                                                                       | (Decrease) increase in deferred income taxes            |            |                           | (1,114  | )    |            |            | 100,293 |  
|                                                                         |                                                                                                       | Increase in interest receivable                         |            |                           | (11,026 | )    |            |            | (65,274 | )
|                                                                         |                                                                                                       | Increase in interest payable                            |            |                           | 1,730   |      |            |            | 18,044  |  
|                                                                         |                                                                                                       | Decrease (increase) in prepaid expenses                 |            |                           | 8,184   |      |            |            | (28,385 | )
|                                                                         |                                                                                                       | Increase in accrued restructuring and integration costs |            |                           |        |      |            |            | 8,753   |  
|                                                                         |                                                                                                       | Increase in trading assets                              |            |                           | (20,743 | )    |            |            | (36,247 | )
|                                                                         |                                                                                                       | Decrease (increase) in loans held for sale              |            |                           | 25,211  |      |            |            | (14,004 | )
|                                                                         |                                                                                                       | Securities gains, net                                   |            |                           | (3,358  | )    |            |            | (684    | )
|                                                                         |                                                                                                       | Other                                                   |            |                           | (77,262 | )    |            |            | 38,506  |  
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |           
|Net cash provided by operating activities                                |                                                                                                       |                                                         | 209,302    |                           |         |      | 256,923    |           
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |           
|Cash flows from investing activities:                                    |                                                                                                       |                                                         |            |                           |         |      |            |           
|                                                                         | Net increase in interest-bearing deposits in other banks                                              |                                                         |            | (52,011                   | )       |      |            | (59,328    | )      
|                                                                         | Net decrease (increase) in Federal funds sold and securities purchased
under agreements to resell     |                                                         |            | 143,456                   |         |      |            | (53,175    | )      
|                                                                         | Proceeds from maturity of available-for-sale investment securities                                    |                                                         |            | 1,019,795                 |         |      |            | 320,978    |        
|                                                                         | Proceeds from the sale of available-for-sale securities                                               |                                                         |            | 339,376                   |         |      |            | 126,059    |        
|                                                                         | Purchase of available-for-sale investment securities                                                  |                                                         |            | (2,549,001                | )       |      |            | (856,639   | )      
|                                                                         | Net increase in loans and leases from originations and collections                                    |                                                         |            | (562,937                  | )       |      |            | (411,322   | )      
|                                                                         | Purchase of loans and leases                                                                          |                                                         |            | (786,458                  | )       |      |            | (10,245    | )      
|                                                                         | Proceeds from the sale of loans                                                                       |                                                         |            | 455,284                   |         |      |            | 170,098    |        
|                                                                         | Net cash paid for acquisitions                                                                        |                                                         |            |                          |         |      |            | (1,793,000 | )      
|                                                                         | Purchase of premises and equipment                                                                    |                                                         |            | (22,513                   | )       |      |            | (10,545    | )      
|                                                                         | Other                                                                                                 |                                                         |            | 2,510                     |         |      |            | (326       | )      
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |           
|Net cash used in investing activities                                    |                                                                                                       |                                                         | (2,012,499 | )                         |         |      | (2,577,445 | )         
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |           
|Cash flows from financing activities:                                    |                                                                                                       |                                                         |            |                           |         |      |            |           
|                                                                         | Net increase in deposits                                                                              |                                                         |            | 478,224                   |         |      |            | 401,822    |        
|                                                                         | Net increase (decrease) in Federal funds purchased and securities sold
under agreements to repurchase |                                                         |            | 595,237                   |         |      |            | (41,906    | )      
|                                                                         | Net increase in other short-term borrowings                                                           |                                                         |            | 329,545                   |         |      |            | 1,296,179  |        
|                                                                         | Proceeds from long-term debt                                                                          |                                                         |            | 315,000                   |         |      |            | 140,000    |        
|                                                                         | Repayment of long-term and subordinated debt                                                          |                                                         |            | (174,224                  | )       |      |            | (354,866   | )      
|                                                                         | Proceeds from issuance of Class A common stock                                                        |                                                         |            |                          |         |      |            | 1,600,000  |        
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |           
|Net cash provided by financing activities                                |                                                                                                       |                                                         | 1,543,782  |                           |         |      | 3,041,229  |           
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |           
|Net (decrease) increase in cash and due from banks                       |                                                                                                       |                                                         | (259,415   | )                         |         |      | 720,707    |           
|Cash and due from banks at beginning of period                           |                                                                                                       |                                                         | 1,761,261  |                           |         |      | 737,262    |           
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |           
|Cash and due from banks at end of period                                 |                                                                                                       | $                                                       | 1,501,846  |                           |         | $    | 1,457,969  |           
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |            |        
|Supplemental disclosures:                                                |                                                                                                       |                                                         |            |                           |         |      |            |           
|                                                                         | Interest paid                                                                                         |                                                         | $          | 198,546                   |         |      | $          | 212,556    |        
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |            |        
|                                                                         | Income taxes paid                                                                                     |                                                         | $          | 129,311                   |         |      | $          | 4,312      |        
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |            |        
|Supplemental schedule of noncash investing and financing activities:     |                                                                                                       |                                                         |            |                           |         |      |            |           
|                                                                         | Loans converted into other real estate owned and repossessed personal property                        |                                                         | $          | 4,249                     |         |      | $          | 7,790      |        
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |            |        
|                                                                         | Loans made to facilitate the sale of other real estate owned                                          |                                                         | $          | 1,218                     |         |      | $          | 110        |        
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |            |        
|In connection with acquisitions, the following liabilities were assumed: |                                                                                                       |                                                         |            |                           |         |      |            |           
|                                                                         | Fair value of assets acquired                                                                         |                                                         | $          |                          |         |      | $          | 10,959,000 |        
|                                                                         | Cash paid                                                                                             |                                                         |            |                          |         |      |            | (1,793,000 | )      
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |           
|Liabilities assumed                                                      |                                                                                                       | $                                                       |           |                           |         | $    | 9,166,000  |           
|                                                                         |                                                                                                       |                                                         |            |                           |         |      |            |            |        

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

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##### Table of Contents






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

1.   Summary of Significant Accounting Policies

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

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

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. As of June 30, 2003, this initiative was
substantially complete. In addition to the severance reserve, we recorded the
following accruals: $34.5 million for losses on subleases, $8.0 million for
contract cancellations, $1.3 million for relocation and other. From the date of
acquisition to June 30, 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:
$36.6 million for severance payments, $7.9 million for sublease loss
amortization, $7.9 million for contract cancellation payments and $0.9 million
for relocation and other payments.

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

|                            |  |                                        |         |                |  |   |         | 
|--------------------------- |  | -------------------------------------- | ------- | -------------- |  | - | ------- | 
|                            |  | Pro Forma Financial Information Period
|                            |  | Ended June 30, 2002                   
|                            |  |                                       
|                            |  | Three Months                           |         | Six Months    
|                            |  |                                        |         |               
|                            |  |                                        |         | (in thousands)
|Net Interest Income         |  | $                                      | 320,577 |                |  | $ | 633,591 | 
|Provision for Credit Losses |  |                                        | 22,902  |                |  |   | 59,328  | 
|Noninterest Income          |  |                                        | 88,429  |                |  |   | 170,979 | 
|Noninterest Expense         |  |                                        | 226,113 |                |  |   | 456,022 | 
|Income Tax Expense          |  |                                        | 62,586  |                |  |   | 111,842 | 
|                            |  |                                        |         |                |  |   |         | 
|Net Income                  |  | $                                      | 97,405  |                |  | $ | 177,378 | 
|                            |  |                                        |         |                |  |   |         | 

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

3.    Derivative Financial Instruments

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

Fair Value Hedges

The Company has various derivative instruments that hedge the fair values
of recognized assets or liabilities or of unrecognized firm commitments (fair
value hedges). At June 30, 2003, the Company carried an interest rate swap of
$2.8 million with a fair market value loss of $0.9 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 June 30, 2003, we carried a $150 million interest rate swap with BNP
Paribas to hedge obligations under the 9.5% BancWest Capital I Quarterly Income
Preferred Securities. We pay 3-month LIBOR plus 3.69% and receive fixed
payments at 9.5%. The fair market value gain of the swap at June 30, 2003 was
$5.3 million.

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##### Table of Contents



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

Cash Flow Hedges

At June 30, 2003, the Company carried interest rate swaps of $600 million
with a fair market value gain of $64.6 million which were categorized as cash
flow hedges, to hedge our LIBOR-based commercial loans. The interest rate swaps
were entered into during 2001 by UCB and mature in 2006. We pay 3-month LIBOR
and receive fixed rates ranging from 5.64% to 5.87%. The net settlement on the
$600 million swaps has increased commercial loan interest income by $11.7
million from January 1, 2003 through June 30, 2003. The Company estimates net
settlement gains, recorded as commercial loan interest income, of $25.4 million
over the next twelve months resulting from these hedges.

During June 2003, the Company entered into interest rate swaps totaling
$50 million in order to reduce exposure to interest rate increases associated
with short-term fixed rate liabilities. The swaps hedge forecasted
transactions associated with short-term fixed rate liabilities. The swaps
mature as follows: $20 million in 2013, $20 million in 2018 and $10 million in
2023. We pay fixed rates ranging from 3.64% to 4.47% and receive 3 month
LIBOR. There has been no effect on net income from these swaps year-to-date
2003. The Company estimates a net increase to interest expense of $1.4 million
over the next twelve months resulting from these hedges.

Free-standing Derivative Instruments

Free-standing derivative instruments include derivative transactions
entered into for risk management purposes that do not otherwise qualify for
hedge accounting. Interest rate lock commitments issued on residential mortgage
loans intended to be held for resale are considered free-standing derivative
instruments. 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 June
30, 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                                 |  | $              | 802,764   |        |  | $        | 69,875 |          |  | $      | 69,019 |          |  | $ | 603,731   |        |  | $ | 31,632 |  |  | $ | 30,974 |  
|Held for trading or free-standing:                  |  |                |           |        |  |          |        |          |  |        |        |          |  |   |           |        |  |   |        |  |  |   |        |  
|Interest rate swaps                                 |  |                | 1,423,301 |        |  |          | 34,504 |          |  |        | (7,629 | )        |  |   | 1,190,938 |        |  |   | 18,740 |  |  |   | (5,129 | )
|Purchased interest rate options                     |  |                | 65,329    |        |  |          | 827    |          |  |        | 827    |          |  |   | 70,117    |        |  |   | 1,022  |  |  |   | 534    |  
|Written interest rate options                       |  |                | 80,732    |        |  |          |       |          |  |        | (388   | )        |  |   | 75,835    |        |  |   |       |  |  |   | (164   | )
|Forward interest rate options                       |  |                | 54,000    |        |  |          |       |          |  |        | (11    | )        |  |   |          |        |  |   |       |  |  |   |       |  
|Rate locks                                          |  |                | 78,000    |        |  |          | 250    |          |  |        | 250    |          |  |   |          |        |  |   |       |  |  |   |       |  
|Commitments to purchase and sell foreign currencies |  |                | 444,942   |        |  |          | 7,396  |          |  |        | 123    |          |  |   | 530,493   |        |  |   | 10,052 |  |  |   | 463    |  
|Purchased foreign exchange options                  |  |                | 45,194    |        |  |          | 667    |          |  |        | 667    |          |  |   |          |        |  |   |       |  |  |   |       |  
|Written foreign exchange options                    |  |                | 45,194    |        |  |          |       |          |  |        | (667   | )        |  |   |          |        |  |   |       |  |  |   |       |  

4.    Operating Segments

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

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

9



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##### Table of Contents



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

Bank of the West

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

Regional Banking:

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

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

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

Commercial Banking:

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

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

Consumer Finance:

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

10



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##### Table of Contents



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

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 June
30, 2003. Thanks to its significant market share in Hawaii, First Hawaiian
already has product or service relationships with a majority of the households
in the state. Therefore, a key goal of its retail community banking strategy is
to build those relationships by cross-selling additional products and services
to existing individual and business customers.

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

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

Consumer Banking:

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

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

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 management services, and
also seeks to reinforce customer relationships developed by or in conjunction
with the Retail Banking

11



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##### Table of Contents



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

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 June 30, 2003, the Trust and Investments Division
had approximately 4,000 accounts with a market value of $8.2 billion. Of this
total, $6.0 billion represented assets in nonmanaged accounts and $2.2 billion
were managed assets.

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

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

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 |        | First Hawaiian Bank
|                                  |  |                  |        |                    
|                                  |  | Regional         |        | Commercial          |  | Consumer |       |          |  |         |       | Retail   |  |         |       |            |  | Commercial |       | Financial |  |   |       | 
|(in millions)                     |  | Banking          |        | Banking             |  | Finance  |       | Other(1) |  | Banking |       | Consumer |  | Banking |       | Management |  | Other(2)  
|                                  |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |           
|Three Months Ended June 30, 2003: |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Net interest income               |  | $                | 120.7  |                     |  | $        | 78.2  |          |  | $       | 50.7  |          |  | $       | 19.8  |            |  | $          | 66.3  |           |  | $ | 21.3  |  |  | $ | 7.7   |  |  | $ | 0.1 |  |  | $ | (9.1  | )
|Noninterest income                |  |                  | 41.6   |                     |  |          | 14.0  |          |  |         | 3.5   |          |  |         | 5.1   |            |  |            | 16.1  |           |  |   | 8.5   |  |  |   | 1.6   |  |  |   | 7.9 |  |  |   | 2.4   |  
|Noninterest expense               |  |                  | 109.4  |                     |  |          | 30.0  |          |  |         | 15.6  |          |  |         | 6.2   |            |  |            | 45.3  |           |  |   | 11.5  |  |  |   | 2.3   |  |  |   | 6.9 |  |  |   | (3.4  | )
|Provision for credit losses       |  |                  | 4.3    |                     |  |          | (4.1  | )        |  |         | 16.8  |          |  |         |      |            |  |            | 1.8   |           |  |   | 2.4   |  |  |   |      |  |  |   |    |  |  |   | (0.3  | )
|Tax Provision (benefit)           |  |                  | 19.2   |                     |  |          | 26.2  |          |  |         | 8.6   |          |  |         | 5.9   |            |  |            | 13.5  |           |  |   | 6.0   |  |  |   | 2.1   |  |  |   |    |  |  |   | (0.6  | )
|                                  |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Net income (loss)                 |  | $                | 29.4   |                     |  | $        | 40.1  |          |  | $       | 13.2  |          |  | $       | 12.8  |            |  | $          | 21.8  |           |  | $ | 9.9   |  |  | $ | 4.9   |  |  | $ | 1.1 |  |  | $ | (2.4  | )
|                                  |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Segment Assets at June 30         |  | $                | 7,608  |                     |  | $        | 8,367 |          |  | $       | 7,550 |          |  | $       | 4,288 |            |  | $          | 3,311 |           |  | $ | 1,458 |  |  | $ | 1,036 |  |  | $ | 15  |  |  | $ | 3,549 |  
|Segment goodwill at June 30       |  |                  | 1,214  |                     |  |          | 706   |          |  |         | 308   |          |  |         |      |            |  |            | 650   |           |  |   | 216   |  |  |   | 118   |  |  |   | 10  |  |  |   |      |  
|Average assets                    |  | $                | 7,334  |                     |  | $        | 8,208 |          |  | $       | 7,413 |          |  | $       | 3,623 |            |  | $          | 3,289 |           |  | $ | 1,440 |  |  | $ | 1,028 |  |  | $ | 14  |  |  | $ | 3,425 |  
|Average loans                     |  |                  | 5,342  |                     |  |          | 6,931 |          |  |         | 7,096 |          |  |         |      |            |  |            | 2,452 |           |  |   | 1,242 |  |  |   | 883   |  |  |   | 1   |  |  |   | 433   |  
|Average deposits                  |  |                  | 13,785 |                     |  |          | 2,744 |          |  |         | 14    |          |  |         | 1,188 |            |  |            | 6,464 |           |  |   | 8     |  |  |   | 17    |  |  |   | 49  |  |  |   | 151   |  
|Three Months Ended June 30, 2002: |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Net interest income               |  | $                | 133.2  |                     |  | $        | 75.5  |          |  | $       | 43.3  |          |  | $       | 18.3  |            |  | $          | 65.2  |           |  | $ | 17.6  |  |  | $ | 7.6   |  |  | $ |    |  |  | $ | (8.3  | )
|Noninterest income                |  |                  | 39.4   |                     |  |          | 9.7   |          |  |         | 2.9   |          |  |         | 7.7   |            |  |            | 16.0  |           |  |   | 5.6   |  |  |   | 1.7   |  |  |   | 6.7 |  |  |   | 1.0   |  
|Noninterest expense               |  |                  | 111.8  |                     |  |          | 28.1  |          |  |         | 14.1  |          |  |         | 14.8  |            |  |            | 43.5  |           |  |   | 10.3  |  |  |   | 2.0   |  |  |   | 5.9 |  |  |   | (3.1  | )
|Provision for credit losses       |  |                  | 2.6    |                     |  |          | 2.1   |          |  |         | 13.7  |          |  |         |      |            |  |            | 1.9   |           |  |   | 2.4   |  |  |   | 0.3   |  |  |   |    |  |  |   | (0.1  | )
|Tax Provision (benefit)           |  |                  | 23.5   |                     |  |          | 22.2  |          |  |         | 7.4   |          |  |         | 3.7   |            |  |            | 13.7  |           |  |   | 4.0   |  |  |   | 2.3   |  |  |   | 0.3 |  |  |   | (1.7  | )
|                                  |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Net income (loss)                 |  | $                | 34.7   |                     |  | $        | 32.8  |          |  | $       | 11.0  |          |  | $       | 7.5   |            |  | $          | 22.1  |           |  | $ | 6.5   |  |  | $ | 4.7   |  |  | $ | 0.5 |  |  | $ | (2.4  | )
|                                  |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |     |  |  |   |       |  
|Segment Assets at June 30         |  | $                | 7,858  |                     |  | $        | 8,022 |          |  | $       | 6,569 |          |  | $       | 3,033 |            |  | $          | 3,208 |           |  | $ | 1,403 |  |  | $ | 1,107 |  |  | $ | 14  |  |  | $ | 3,137 |  
|Segment goodwill at June 30       |  |                  | 1,208  |                     |  |          | 704   |          |  |         | 306   |          |  |         |      |            |  |            | 650   |           |  |   | 216   |  |  |   | 118   |  |  |   | 10  |  |  |   |      |  
|Average assets                    |  | $                | 7,912  |                     |  | $        | 8,193 |          |  | $       | 6,292 |          |  | $       | 2,637 |            |  | $          | 3,288 |           |  | $ | 1,397 |  |  | $ | 1,091 |  |  | $ | 13  |  |  | $ | 2,894 |  
|Average loans                     |  |                  | 5,987  |                     |  |          | 7,050 |          |  |         | 5,970 |          |  |         |      |            |  |            | 2,428 |           |  |   | 1,179 |  |  |   | 980   |  |  |   |    |  |  |   | 560   |  
|Average deposits                  |  |                  | 13,636 |                     |  |          | 2,331 |          |  |         | 13    |          |  |         | 1,661 |            |  |            | 5,986 |           |  |   | 10    |  |  |   | 17    |  |  |   | 42  |  |  |   | 188   |  

[Additional columns below]

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

|                                  |  |             |       |             |  |              |        |   |  |   |        | 
|--------------------------------- |  | ----------- | ----- | ----------- |  | ------------ | ------ | - |  | - | ------ | 
|                                  |  | Other       |       | Reconciling |  | Consolidated
|(in millions)                     |  | BancWest(3) |       | Items(4)    |  | Totals      
|                                  |  |             |       |             |  |             
|Three Months Ended June 30, 2003: |  |             |       |             |  |              |        |   |  |   |        | 
|Net interest income               |  | $           | (34.5 | )           |  | $            | 0.1    |   |  | $ | 321.3  | 
|Noninterest income                |  |             |      |             |  |              | (0.1   | ) |  |   | 100.6  | 
|Noninterest expense               |  |             | 6.2   |             |  |              | (0.2   | ) |  |   | 229.8  | 
|Provision for credit losses       |  |             | (2.0  | )           |  |              |       |   |  |   | 18.9   | 
|Tax Provision (benefit)           |  |             | (15.6 | )           |  |              | 0.3    |   |  |   | 65.6   | 
|                                  |  |             |       |             |  |              |        |   |  |   |        | 
|Net income (loss)                 |  | $           | (23.1 | )           |  | $            | (0.1   | ) |  | $ | 107.6  | 
|                                  |  |             |       |             |  |              |        |   |  |   |        | 
|Segment Assets at June 30         |  | $           | 7,107 |             |  | $            | (7,841 | ) |  | $ | 36,448 | 
|Segment goodwill at June 30       |  |             | 5     |             |  |              |       |   |  |   | 3,227  | 
|Average assets                    |  | $           | 7,076 |             |  | $            | (7,740 | ) |  | $ | 35,110 | 
|Average loans                     |  |             | 60    |             |  |              | (20    | ) |  |   | 24,420 | 
|Average deposits                  |  |             |      |             |  |              | (81    | ) |  |   | 24,339 | 
|Three Months Ended June 30, 2002: |  |             |       |             |  |              |        |   |  |   |        | 
|Net interest income               |  | $           | (30.7 | )           |  | $            | 0.2    |   |  | $ | 321.9  | 
|Noninterest income                |  |             | (2.3  | )           |  |              |       |   |  |   | 88.4   | 
|Noninterest expense               |  |             | 1.4   |             |  |              |       |   |  |   | 228.8  | 
|Provision for credit losses       |  |             |      |             |  |              |       |   |  |   | 22.9   | 
|Tax Provision (benefit)           |  |             | (13.4 | )           |  |              |       |   |  |   | 62.0   | 
|                                  |  |             |       |             |  |              |        |   |  |   |        | 
|Net income (loss)                 |  | $           | (21.0 | )           |  | $            | 0.2    |   |  | $ | 96.6   | 
|                                  |  |             |       |             |  |              |        |   |  |   |        | 
|Segment Assets at June 30         |  | $           | 7,335 |             |  | $            | (7,703 | ) |  | $ | 33,983 | 
|Segment goodwill at June 30       |  |             | 173   |             |  |              |       |   |  |   | 3,385  | 
|Average assets                    |  | $           | 7,303 |             |  | $            | (7,618 | ) |  | $ | 33,402 | 
|Average loans                     |  |             | 60    |             |  |              | (3     | ) |  |   | 24,211 | 
|Average deposits                  |  |             |      |             |  |              |       |   |  |   | 23,884 | 



|                                |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |      |  |  |   |       |  
|------------------------------- |  | ---------------- | ------ | ------------------- |  | -------- | ----- | -------- |  | ------- | ----- | -------- |  | ------- | ----- | ---------- |  | ---------- | ----- | --------- |  | - | ----- |  |  | - | ----- |  |  | - | ---- |  |  | - | ----- | -
|                                |  | Bank of the West |        | First Hawaiian Bank
|                                |  |                  |        |                    
|                                |  | Regional         |        | Commercial          |  | Consumer |       |          |  |         |       | Retail   |  |         |       |            |  | Commercial |       | Financial |  |   |       | 
|(in millions)                   |  | Banking          |        | Banking             |  | Finance  |       | Other(1) |  | Banking |       | Consumer |  | Banking |       | Management |  | Other(2)  
|                                |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |           
|Six Months Ended June 30, 2003: |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |      |  |  |   |       |  
|Net interest income             |  | $                | 242.6  |                     |  | $        | 155.9 |          |  | $       | 100.4 |          |  | $       | 35.4  |            |  | $          | 131.2 |           |  | $ | 41.3  |  |  | $ | 15.4  |  |  | $ | 0.2  |  |  | $ | (17.2 | )
|Noninterest income              |  |                  | 80.3   |                     |  |          | 25.4  |          |  |         | 6.2   |          |  |         | 10.6  |            |  |            | 33.8  |           |  |   | 17.4  |  |  |   | 3.2   |  |  |   | 14.8 |  |  |   | 3.8   |  
|Noninterest expense             |  |                  | 216.0  |                     |  |          | 59.9  |          |  |         | 31.0  |          |  |         | 12.7  |            |  |            | 88.8  |           |  |   | 22.8  |  |  |   | 4.4   |  |  |   | 13.2 |  |  |   | (5.7  | )
|Provision for credit losses     |  |                  | 7.9    |                     |  |          | (3.8  | )        |  |         | 29.6  |          |  |         |      |            |  |            | 3.5   |           |  |   | 4.6   |  |  |   |      |  |  |   |     |  |  |   | 0.2   |  
|Tax Provision (benefit)         |  |                  | 39.2   |                     |  |          | 49.6  |          |  |         | 18.2  |          |  |         | 11.7  |            |  |            | 27.5  |           |  |   | 11.8  |  |  |   | 4.2   |  |  |   | 0.3  |  |  |   | (1.8  | )
|                                |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |      |  |  |   |       |  
|Net income (loss)               |  | $                | 59.8   |                     |  | $        | 75.6  |          |  | $       | 27.8  |          |  | $       | 21.6  |            |  | $          | 45.2  |           |  | $ | 19.5  |  |  | $ | 10.0  |  |  | $ | 1.5  |  |  | $ | (6.1  | )
|                                |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |      |  |  |   |       |  
|Segment Assets at June 30       |  | $                | 7,608  |                     |  | $        | 8,367 |          |  | $       | 7,550 |          |  | $       | 4,288 |            |  | $          | 3,311 |           |  | $ | 1,458 |  |  | $ | 1,036 |  |  | $ | 15   |  |  | $ | 3,549 |  
|Segment goodwill at June 30     |  |                  | 1,214  |                     |  |          | 706   |          |  |         | 308   |          |  |         |      |            |  |            | 650   |           |  |   | 216   |  |  |   | 118   |  |  |   | 10   |  |  |   |      |  
|Average assets                  |  | $                | 7,329  |                     |  | $        | 8,199 |          |  | $       | 7,257 |          |  | $       | 3,405 |            |  | $          | 3,277 |           |  | $ | 1,434 |  |  | $ | 1,041 |  |  | $ | 14   |  |  | $ | 3,411 |  
|Average loans                   |  |                  | 5,320  |                     |  |          | 6,923 |          |  |         | 6,929 |          |  |         |      |            |  |            | 2,436 |           |  |   | 1,235 |  |  |   | 898   |  |  |   | 1    |  |  |   | 457   |  
|Average deposits                |  |                  | 13,660 |                     |  |          | 2,667 |          |  |         | 14    |          |  |         | 1,293 |            |  |            | 6,428 |           |  |   | 9     |  |  |   | 19    |  |  |   | 50   |  |  |   | 153   |  
|Six Months Ended June 30, 2002: |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |      |  |  |   |       |  
|Net interest income             |  | $                | 220.6  |                     |  | $        | 109.0 |          |  | $       | 85.1  |          |  | $       | 25.8  |            |  | $          | 132.4 |           |  | $ | 35.1  |  |  | $ | 13.5  |  |  | $ | 0.1  |  |  | $ | (16.1 | )
|Noninterest income              |  |                  | 64.8   |                     |  |          | 11.6  |          |  |         | 5.4   |          |  |         | 8.9   |            |  |            | 32.2  |           |  |   | 11.5  |  |  |   | 3.2   |  |  |   | 14.0 |  |  |   | 0.6   |  
|Noninterest expense             |  |                  | 182.4  |                     |  |          | 38.6  |          |  |         | 28.4  |          |  |         | 21.0  |            |  |            | 86.9  |           |  |   | 20.5  |  |  |   | 3.6   |  |  |   | 11.9 |  |  |   | (7.7  | )
|Provision for credit losses     |  |                  | 4.5    |                     |  |          | 3.4   |          |  |         | 24.8  |          |  |         |      |            |  |            | 4.1   |           |  |   | 4.5   |  |  |   | 0.3   |  |  |   |     |  |  |   | 1.3   |  
|Tax Provision (benefit)         |  |                  | 39.7   |                     |  |          | 31.7  |          |  |         | 15.0  |          |  |         | 4.7   |            |  |            | 28.3  |           |  |   | 8.3   |  |  |   | 4.1   |  |  |   | 0.9  |  |  |   | (3.3  | )
|                                |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |      |  |  |   |       |  
|Net income (loss)               |  | $                | 58.8   |                     |  | $        | 46.9  |          |  | $       | 22.3  |          |  | $       | 9.0   |            |  | $          | 45.3  |           |  | $ | 13.3  |  |  | $ | 8.7   |  |  | $ | 1.3  |  |  | $ | (5.8  | )
|                                |  |                  |        |                     |  |          |       |          |  |         |       |          |  |         |       |            |  |            |       |           |  |   |       |  |  |   |       |  |  |   |      |  |  |   |       |  
|Segment Assets at June 30       |  | $                | 7,858  |                     |  | $        | 8,022 |          |  | $       | 6,569 |          |  | $       | 3,033 |            |  | $          | 3,208 |           |  | $ | 1,403 |  |  | $ | 1,107 |  |  | $ | 14   |  |  | $ | 3,137 |  
|Segment goodwill at June 30     |  |                  | 1,208  |                     |  |          | 704   |          |  |         | 306   |          |  |         |      |            |  |            | 650   |           |  |   | 216   |  |  |   | 118   |  |  |   | 10   |  |  |   |      |  
|Average assets                  |  | $                | 5,849  |                     |  | $        | 5,996 |          |  | $       | 6,418 |          |  | $       | 2,075 |            |  | $          | 3,410 |           |  | $ | 1,368 |  |  | $ | 968   |  |  | $ | 13   |  |  | $ | 2,875 |  
|Average loans                   |  |                  | 4,220  |                     |  |          | 5,131 |          |  |         | 6,046 |          |  |         |      |            |  |            | 2,547 |           |  |   | 1,146 |  |  |   | 862   |  |  |   |     |  |  |   | 583   |  
|Average deposits                |  |                  | 11,476 |                     |  |          | 1,344 |          |  |         | 15    |          |  |         | 1,431 |            |  |            | 5,918 |           |  |   | 10    |  |  |   | 22    |  |  |   | 51   |  |  |   | 194   |  

[Additional columns below]

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

|                                |  |             |       |             |  |              |        |   |  |   |        | 
|------------------------------- |  | ----------- | ----- | ----------- |  | ------------ | ------ | - |  | - | ------ | 
|                                |  | Other       |       | Reconciling |  | Consolidated
|(in millions)                   |  | BancWest(3) |       | Items(4)    |  | Totals      
|                                |  |             |       |             |  |             
|Six Months Ended June 30, 2003: |  |             |       |             |  |              |        |   |  |   |        | 
|Net interest income             |  | $           | (68.8 | )           |  | $            | 0.1    |   |  | $ | 636.5  | 
|Noninterest income              |  |             |      |             |  |              | (0.1   | ) |  |   | 195.4  | 
|Noninterest expense             |  |             | 7.5   |             |  |              | (0.2   | ) |  |   | 450.4  | 
|Provision for credit losses     |  |             |      |             |  |              | (0.4   | ) |  |   | 41.6   | 
|Tax Provision (benefit)         |  |             | (30.9 | )           |  |              | 0.4    |   |  |   | 130.2  | 
|                                |  |             |       |             |  |              |        |   |  |   |        | 
|Net income (loss)               |  | $           | (45.4 | )           |  | $            | 0.2    |   |  | $ | 209.7  | 
|                                |  |             |       |             |  |              |        |   |  |   |        | 
|Segment Assets at June 30       |  | $           | 7,107 |             |  | $            | (7,841 | ) |  | $ | 36,448 | 
|Segment goodwill at June 30     |  |             | 5     |             |  |              |       |   |  |   | 3,227  | 
|Average assets                  |  | $           | 7,006 |             |  | $            | (7,621 | ) |  | $ | 34,752 | 
|Average loans                   |  |             | 60    |             |  |              | (25    | ) |  |   | 24,234 | 
|Average deposits                |  |             |      |             |  |              | (63    | ) |  |   | 24,230 | 
|Six Months Ended June 30, 2002: |  |             |       |             |  |              |        |   |  |   |        | 
|Net interest income             |  | $           | (59.3 | )           |  | $            | 0.2    |   |  | $ | 546.4  | 
|Noninterest income              |  |             | (1.3  | )           |  |              | 0.1    |   |  |   | 151.0  | 
|Noninterest expense             |  |             | 2.1   |             |  |              | 0.2    |   |  |   | 387.9  | 
|Provision for credit losses     |  |             |      |             |  |              |       |   |  |   | 42.9   | 
|Tax Provision (benefit)         |  |             | (24.8 | )           |  |              |       |   |  |   | 104.6  | 
|                                |  |             |       |             |  |              |        |   |  |   |        | 
|Net income (loss)               |  | $           | (37.9 | )           |  | $            | 0.1    |   |  | $ | 162.0  | 
|                                |  |             |       |             |  |              |        |   |  |   |        | 
|Segment Assets at June 30       |  | $           | 7,335 |             |  | $            | (7,703 | ) |  | $ | 33,983 | 
|Segment goodwill at June 30     |  |             | 173   |             |  |              |       |   |  |   | 3,385  | 
|Average assets                  |  | $           | 6,294 |             |  | $            | (6,642 | ) |  | $ | 28,624 | 
|Average loans                   |  |             | 60    |             |  |              | (39    | ) |  |   | 20,556 | 
|Average deposits                |  |             |      |             |  |              | (33    | ) |  |   | 20,428 | 

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##### Table of Contents



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

(1) The material net interest income and noninterest income items in the
Other column relate to Treasury activities of $21.3 million and $38.1 million
and unallocated other income of $3.6 million and $7.9 million for the three
and six months ended June 30, 2003, respectively. The material net interest
income and noninterest income items in the Other column for the three and six
months ended June 30, 2002 resulted substantially from Treasury activities of
$12.9 million and $18.1 million and unallocated other income of $12.9 million
and $16.6 million, respectively.

The material noninterest expense items in the Other column for the three and
six months ended June 30, 2003, are substantially derived from Treasury
activities and unallocated administrative items. The noninterest expense
items in the Other column for the three months ended June 30,
2002 are mostly
the result of unallocated merger-related costs of $2.7 million, Treasury
activities of $4.4 million and unallocated administrative items of $3.0
million. The material noninterest expense items in the Other column for the
six months ended June 30, 2002 resulted primarily from Treasury activities of
$7.1 million, unallocated merger-related costs of $8.8 million and unallocated
administrative items of $3.9 million.

The material average asset items in the Other column relate to unallocated
Treasury securities for the periods presented.

The material average deposit items in the Other column relate to unallocated
Treasury balances for the three and six months ended June 30, 2003 and 2002.

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

The material items in Other were related to the following for the periods
presented:

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

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

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

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

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

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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 June 30, 2003, the Company had goodwill of $3.2 billion.
The table below provides the breakdown of goodwill by reportable segment and
the change during the year.

|                                |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       |            |          |            |        |     |   |              |   |     |   |           |   |    |   |  |   |   |   |  |   |       |    |  
|------------------------------- | --------------- | ------- | ---------------- | ------- | ------------------- | ------- | -------- | ----- | ------- | -------- | --- | ------- |  | ----- | ---------- | -------- | ---------- | ------ | --- | - | ------------ | - | --- | - | --------- | - | -- | - |  | - | - | - |  | - | ----- | -- | -
|                                |                 |         | Bank of the West |         | First Hawaiian Bank
|                                |                 |         |                  |         |                    
|                                |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       | 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 June 30, 2003:    |                 | $       | 1,214            |         |                     | $       | 706      |       |         | $        | 308 |         |  | $     | 650        |          |            | $      | 216 |   |              | $ | 118 |   |           | $ | 10 |   |  | $ | 5 |   |  | $ | 3,227 |   
|                                |                 |         |                  |         |                     |         |          |       |         |          |     |         |  |       |            |          |            |        |     |   |              |   |     |   |           |   |    |   |  |   |   |   |  |   |       |   

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

|                                 |       |   |          |         |              |   |                |        |  |   |         |         | 
|-------------------------------- | ----- | - | -------- | ------- | ------------ | - | -------------- | ------ |  | - | ------- | ------- | 
|                                 |       |   | Gross    |         |              |   |                |        |  |   |        
|                                 |       |   | Carrying |         | Accumulated  |   | Net Book      
|                                 |       |   | Amount   |         | Amortization |   | Value         
|                                 |       |   |          |         |              |   |               
|                                 |       |   |          |         |              |   | (in thousands) |        |  |   |        
|Balance as of June 30, 2003:     |       |   |          |         |              |   |                |        |  |   |         |        
|Core Deposits                    |       | $ | 230,538  |         |              | $ | 31,654         |        |  | $ | 198,884 |        
|                                 |       |   |          |         |              |   |                |        |  |   |         |        
|                                 | Total |   | $        | 230,538 |              |   | $              | 31,654 |  |   | $       | 198,884 | 
|Balance as of December 31, 2002: |       |   |          |         |              |   |                |        |  |   |         |        
|Core Deposits                    |       | $ | 230,538  |         |              | $ | 20,127         |        |  | $ | 210,411 |        
|                                 |       |   |          |         |              |   |                |        |  |   |         |        
|                                 | Total |   | $        | 230,538 |              |   | $              | 20,127 |  |   | $       | 210,411 | 

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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




OVERVIEW

Headquartered in Honolulu, Hawaii, with offices in San Francisco, BancWest
is a financial holding company with assets in excess of $36 billion at June 30,
2003. BancWest, through its subsidiaries, operates a general commercial
banking business and other businesses related to banking. Its principal assets
are its investments in Bank of the West, a State of California-chartered bank;
and First Hawaiian, a State of Hawaii-chartered bank. We provide a wide range
of general commercial banking services, providing retail and corporate banking,
trust and insurance services to individuals, institutions, businesses and
governments.

Net income for the second quarter of 2003 was $107.7 million, compared
with $96.6 million for the second quarter of 2002. Net income for the first
six months of 2003 was $209.7 million compared with $162.0 million for the same
period in 2002. Net interest income was $321.3 million for the second quarter
of 2003 and $636.6 million for the first six months of 2003 compared with
$321.9 million and $546.4 million for the same periods of 2002. Noninterest
income was $100.6 million and $195.4 million for the second quarter and first
half of 2003, respectively, compared with $88.4 million and $151.1 million for
the same periods in 2002. Noninterest expense totaled $229.8 million and
$450.4 million for the second quarter and first half of 2003, respectively,
compared with $228.8 million and $387.9 million for the same periods of 2002.

BancWest had total assets of $36.4 billion at June 30, 2003, up 7.3% from
a year earlier. Investment Securities totaled $5.1 billion, an increase of
49.8% as compared to the same period in 2002. Loans and leases totaled $25.0
billion, an increase of 3.7% compared to the same period in 2002. Deposits
were $25.0 billion, up 3.8%.

BancWests nonperforming assets were reduced significantly to 0.75% of
loans and foreclosed properties at June 30, 2003, an improvement from 1.04% at
June 30, 2002. The provision for credit losses was $18.9 million for the
second quarter of 2003 compared to $22.9 million for the same period in 2002.
BancWests allowance for credit losses was 1.57% of total loans and leases at
June 30, 2003, compared to 1.59% at December 31, 2002 and 1.61% at June 30,
2002.




NEW PRONOUNCEMENTS

In January 2003, the Financial Accounting Standards Board (FASB) issued
Financial Interpretation 46, Consolidation of Variable Interest Entities (FIN
46). Previously, a company generally included another entity in its
consolidated financial statements only if it controlled the entity through
voting interests. FIN 46 changes that by requiring a variable interest entity
(VIE) to be consolidated by a company if that company is subject to a majority
of the risk of loss from the VIEs activities or entitled to receive a majority
of the VIEs residual returns or both. The company that consolidates the VIE
is its primary beneficiary. The consolidation requirements of FIN 46 apply
immediately to VIEs created after January 31, 2003 and to all VIEs for interim
periods beginning after June 15, 2003. We have not been party to the creation
of any VIEs since January 31, 2003. However, we are party to three VIEs that
were created prior to January 2003.

REFIRST, Inc. is a VIE that was created by a nonrelated third party to
construct, finance and hold title to our administrative headquarters building
in Honolulu, First Hawaiian Center (FHC). We entered into a noncancelable
operating lease for FHC with REFIRST, Inc. that terminates on December 1, 2003.
Our intention is to purchase FHC at the end of the lease term. Prior to July
1, 2003, we were not required to consolidate REFIRST, Inc. into our
Consolidated Financial Statements. However, upon our implementation of FIN 46,
REFIRST, Inc. was consolidated into BancWest effective July 1, 2003 and will be
included in our future Consolidated Financial Statements. 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
of Cash Flows on a prospective basis. The provisions of FIN 46 require us to
record a cumulative effect of an accounting change upon its implementation. The
amount of such cumulative effect, (essentially, a retrospective depreciation
charge for an 18- month period covering the time in which the building was last
revalued for purchase-accounting purposes) as it relates to the consolidation
of REFIRST, Inc., recognized in July 2003 was an after-tax charge to earnings
of approximately $2.4 million. Additionally, we increased the total assets by
approximately $160 million (principally due to the addition of the FHC
building), increased debt by approximately $193.9 million, reduced the deferred
tax liability by approximately $1.7 million and decreased the reserve for
the guaranteed residual value upon lease termination of $30 million.

As of June 30, 2003, BancWest Capital I (BWE Trust) and First Hawaiian
Capital I (FH Trust) (the Trusts) were fully consolidated subsidiaries of
BancWest Corporation. The Trusts issued preferred and common capital
securities. The preferred capital securities

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##### Table of Contents



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

were sold to the public; BWE owns
the common securities. The purpose of these entities is to allow for the
issuance of preferred capital securities that qualify for inclusion in Tier 1
regulatory capital. At the Trusts inception, we issued junior subordinated
deferrable interest debentures to the Trusts in return for either capital
securities, in the case of BWE Trust, or the proceeds from capital securities
that were issued from FH Trust. In the attached Consolidated Financial
Statements, we report the preferred securities sold to the public on our
Consolidated Balance Sheets as Guaranteed preferred beneficial interests in
Companys junior subordinated debentures, and we include the interest payments
related to these securities on our Consolidated Statements of Income and
Consolidated Statements of Cash Flows as interest expense on long-term debt.
As we are not the primary beneficiary of the Trusts, effective July 1, 2003
these Trusts will be deconsolidated and will not be included in future
Consolidated Financial Statements. The $263 million of Guaranteed preferred
beneficial interests in Companys junior subordinated debentures will no
longer be presented on the Companys balance sheet. Instead, the junior
subordinated debentures issued by BWE to the Trusts will be included as part of
long-term debt on the balance sheet. The deconsolidation will not have a
material impact on our consolidated financial position, cash flows
or, subject to further guidance from the Federal Reserve Board,
Tier 1
capital. There will be no cumulative effect on income as a result of the
deconsolidation.

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

In May 2003, the FASB issued SFAS 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity (SFAS 150).
SFAS 150 establishes standards for the classification and measurement of
financial instruments with characteristics of both liabilities and equity. This
standard is effective beginning in the third quarter of 2003. We do not expect
the adoption of this standard to have a material impact on our consolidated
financial position, results of operations or cash flows.




FORWARD-LOOKING STATEMENTS

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




MONETARY POLICY AND ECONOMIC CONDITIONS

Our earnings and businesses are affected not only by general economic
conditions (both domestic and international), but also by the monetary policies
of various governmental regulatory authorities of (i) the United States and
foreign governments and (ii)

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

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 June 30, 2003. We have established policies and procedures
that are intended to ensure valuation methods are well controlled and applied
consistently from period to period. In addition, the policies and procedures
are intended to ensure that the process for changing methodologies occurs in an
appropriate manner. However, given the sensitivity of our Consolidated
Financial Statements to these critical accounting policies, the use of other
judgments, estimates and assumptions could result in material differences in
our results of operations or financial condition.

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



| |  |  | Allowance for Credit Losses (the Allowance): The allowance for
credit losses represents our best estimate of losses inherent in the
existing loan portfolio. The determination of the adequacy of the
Allowance is ultimately one of management judgment, which includes
consideration of many factors such as: (1) the amount of problem and
potential problem loans and leases; (2) net charge-off experience; (3)
changes in the composition of the loan and lease portfolio by type and
location of loans and leases; (4) changes in overall loan and lease risk
profile and quality; (5) general economic factors; (6) specific regional
economic factors; and (7) the fair value of collateral. Using this
methodology, we allocate the Allowance to individual loans and leases
and to the categories of loans and leases, representing probable losses
based on available information. At least quarterly, we conduct internal
credit analyses to determine which loans and leases are impaired. As a
result, we allocate specific amounts of the Allowance to individual loan
and lease relationships. Note 1 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 June 30, 2003, we had $3.2 billion in goodwill on our
Consolidated Balance Sheet. SFAS No. 142 requires that we perform a
two-step impairment test for goodwill at least annually. However, if an
event occurs or circumstances change during the year indicating potential
impairment, goodwill must be tested. The testing process involves
estimating cash flows for future periods. The first step compares the fair
value of the reporting unit, which is an individual business segment of the
Company, to the carrying amount. If the carrying amount exceeds the fair
value, then a second step is conducted whereby the implied fair value of
the goodwill is compared with the carrying amount of the goodwill. If the
implied fair value of the goodwill is less than the carrying amount, an
impairment loss is recognized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

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




CONSOLIDATED FINANCIAL HIGHLIGHTS(Unaudited)

|                                                                           |                              |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |   |       |  
|-------------------------------------------------------------------------- | ---------------------------- | ------------------- | ---------- | ------------------ | ----- | ---------------- | ---------- | ---------------------- | ----- | ---- | ---------- | - | ----- | - | ---------- | - | ----- | -
|                                                                           |                              |                     |            | Three Months Ended |       | Six Months Ended
|                                                                           |                              |                     |            | June 30,           |       | June 30,        
|                                                                           |                              |                     |            |                    |       |                 
|                                                                           |                              |                     |            | 2003               |       | 2002             |            | 2003                   |       | 2002
|                                                                           |                              |                     |            |                    |       |                  |            |                        |       |     
|                                                                           |                              |                     |            |                    |       |                  |            | (dollars in thousands) |       |      |            |  
|Earnings:                                                                  |                              |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |  
|Net interest income                                                        |                              | $                   | 321,325    |                    |       | $                | 321,894    |                        |       | $    | 636,564    |   |       | $ | 546,374    |  
|Provision for credit losses                                                |                              |                     | 18,860     |                    |       |                  | 22,902     |                        |       |      | 41,550     |   |       |   | 42,909     |  
|Noninterest income                                                         |                              |                     | 100,574    |                    |       |                  | 88,429     |                        |       |      | 195,408    |   |       |   | 151,053    |  
|Noninterest expense                                                        |                              |                     | 229,789    |                    |       |                  | 228,820    |                        |       |      | 450,449    |   |       |   | 387,918    |  
|Tax provision                                                              |                              |                     | 65,588     |                    |       |                  | 62,023     |                        |       |      | 130,230    |   |       |   | 104,605    |  
|Net income                                                                 |                              | $                   | 107,662    |                    |       | $                | 96,578     |                        |       | $    | 209,743    |   |       | $ | 161,995    |  
|Selected Financial Ratios:                                                 |                              |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |  
|Return on average total assets (ROA)                                       |                              |                     | 1.23       | %                  |       |                  | 1.16       | %                      |       |      | 1.22       | % |       |   | 1.14       | %
|Return on average stockholders equity (ROE)                               |                              |                     | 10.71      |                    |       |                  | 10.41      |                        |       |      | 10.63      |   |       |   | 10.83      |  
|Net interest margin (taxable-equivalent basis)                             |                              |                     | 4.39       |                    |       |                  | 4.65       |                        |       |      | 4.44       |   |       |   | 4.62       |  
|Allowance for credit losses to total loans and leases
(at June 30)         |                              |                     | 1.57       |                    |       |                  | 1.61       |                        |       |      | 1.57       |   |       |   | 1.61       |  
|Nonperforming assets to total assets (at June 30)                          |                              |                     | 0.52       |                    |       |                  | 0.74       |                        |       |      | 0.52       |   |       |   | 0.74       |  
|Allowance for credit losses to nonperforming
loans and leases (at June 30) |                              |                     | 2.30       | x                  |       |                  | 1.69       | x                      |       |      | 2.30       | x |       |   | 1.69       | x
|Regulatory Capital Ratios:                                                 |                              |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |  
|                                                                           | Leverage Ratio1:             |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |   |      
|                                                                           |                              | Bank of the West    |            |                    | 9.51  | %                |            |                        | 8.75  | %    |            |   | 9.51  | % |            |   | 8.75  | %
|                                                                           |                              | First Hawaiian Bank |            |                    | 9.69  |                  |            |                        | 8.81  |      |            |   | 9.69  |   |            |   | 8.81  |  
|                                                                           | Tier 1 capital (risk-based): |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |   |      
|                                                                           |                              | Bank of the West    |            |                    | 10.28 |                  |            |                        | 9.63  |      |            |   | 10.28 |   |            |   | 9.63  |  
|                                                                           |                              | First Hawaiian Bank |            |                    | 12.19 |                  |            |                        | 10.31 |      |            |   | 12.19 |   |            |   | 10.31 |  
|                                                                           | Total capital (risk-based):  |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |   |      
|                                                                           |                              | Bank of the West    |            |                    | 12.54 |                  |            |                        | 11.97 |      |            |   | 12.54 |   |            |   | 11.97 |  
|                                                                           |                              | First Hawaiian Bank |            |                    | 14.59 |                  |            |                        | 12.66 |      |            |   | 14.59 |   |            |   | 12.66 |  
|Balance Sheet Data Averages:                                               |                              |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |  
|Average assets                                                             |                              |                     | 35,110,290 |                    |       |                  | 33,401,650 |                        |       |      | 34,752,021 |   |       |   | 28,623,787 |  
|Average loans2                                                             |                              |                     | 24,419,645 |                    |       |                  | 24,210,725 |                        |       |      | 24,233,673 |   |       |   | 20,556,271 |  
|Average deposits                                                           |                              |                     | 24,339,402 |                    |       |                  | 23,884,263 |                        |       |      | 24,229,748 |   |       |   | 20,427,760 |  
|Average stockholders equity                                               |                              |                     | 4,032,518  |                    |       |                  | 3,721,606  |                        |       |      | 3,979,376  |   |       |   | 3,017,563  |  
|Balance Sheet Data At Period End:                                          |                              |                     |            |                    |       |                  |            |                        |       |      |            |   |       |   |            |  
|Assets                                                                     |                              |                     | 36,447,686 |                    |       |                  | 33,982,709 |                        |       |      | 36,447,686 |   |       |   | 33,982,709 |  
|Loans2                                                                     |                              |                     | 25,068,483 |                    |       |                  | 24,162,810 |                        |       |      | 25,068,483 |   |       |   | 24,162,810 |  
|Deposits                                                                   |                              |                     | 25,035,703 |                    |       |                  | 24,108,999 |                        |       |      | 25,035,703 |   |       |   | 24,108,999 |  
|Stockholders equity                                                       |                              |                     | 4,087,650  |                    |       |                  | 3,799,479  |                        |       |      | 4,087,650  |   |       |   | 3,799,479  |  



---

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

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




NET INTEREST INCOME

Net interest income decreased 0.2% in the three months ended June 30, 2003 to
$321.3 million from $321.9 million in the corresponding period last year. Net interest
income increased to $636.6 million, a growth of 16.5% in the six months ending
June 30, 2003 from $546.4 million in the same six-month period last year. The
margins in the three and six-month periods ending June 30, 2003 decreased in a
record low interest rate environment in which the yields on our earning assets
declined faster than the rates on our funding sources, resulting in a negative
impact to net interest income that is presented in our three-month comparison.
The increase in the six-month period was primarily due to changes in our
earning assets portfolio and shifts in our deposits.

Average earning assets increased by $1.6 billion and $5.1 billion or 5.8% and
21.4%, respectively, in the three and six months ended June 30, 2003 from the
corresponding periods last year. These increases were primarily driven by
purchases of investment securities, residential real estate loans and
originations of consumer loans. In addition, our March 2002 acquisition of
United California Bank (UCB) increased both our investment securities and loans
and leases. We significantly increased our purchasing of investment securities
in the three months ended June 30, 2003 from the comparable period last year.
Average investment securities increased $1.4 billion and $1.4 billion or 42.6%
and 47.5%, respectively, in the three and six-month periods ended June 30, 2003
compared to the corresponding periods last year. Average loans and leases
outstanding grew slightly during the three-month period ended June 30, 2003 and
17.9% or $3.7 billion during the six-month period ended June 30, 2003 compared
to the same periods last year.

For the three and six months ended June 30, 2003 interest-bearing demand
deposits decreased 29.3% and 25.3% or $112.6 million and $91.1 million.
Savings deposits increased $753.8 million and $2.3 billion or 8.1% and 31.1%,
respectively for the three and six months ended June 30, 2003 compared to last
year. Short-term borrowing decreased 20.9% and 7.5% or $505.7 million and
$140.7 million, respectively, offset by a significant increase in long-term
borrowing of 55.8% and 53.1% or $1.3 billion and $1.2 billion in the three and
six-month periods, respectively, ending June 30, 2003 from the same periods in
2002. The shift from short-term to long-term debt was primarily a result of
finalizing the long-term financing for the portion of the UCB acquisition ($800
million) that had been financed during the interim with short-term debt.

In addition to a falling interest rate environment, our cost of funds was
lowered by an increase in average noninterest-bearing deposits in the three and
six months ended June 30, 2003 as compared to the same periods in 2002. The
percentage of average noninterest-bearing deposits to total average deposits
for the three and six months ended June 30, 2003 increased to 28.4% and 28.1%,
respectively, from 24.5% and 23.7% for the same periods in 2002.

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

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

|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |      |  
|------------------------------------- | ---------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------ | ---------------- | ---------- | --------------------------- | ---------- | ------- | ------- | -------- | ------ | ------- | ---- | ------- | --------- | ---------- | ---------- | ---------- | --------- | -------- | ------- | ------- | ------ | ---- | ---- | ---- | ---- | -
|                                      |                                                                        |                                                 |                                                        |                  |            | Three Months Ended June 30,
|                                      |                                                                        |                                                 |                                                        |                  |            |                            
|                                      |                                                                        |                                                 |                                                        |                  |            | 2003                        |            | 2002   
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |        
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         | Interest |        |         |      |         |           |            |            |            |           | Interest |         |         |        |     
|                                      |                                                                        |                                                 |                                                        |                  |            | Average                     |            | Income/ |         | Yield/   |        | Average |      | Income/ |           | Yield/    
|                                      |                                                                        |                                                 |                                                        |                  |            | Balance                     |            | Expense |         | Rate (1) |        | Balance |      | Expense |           | Rate (1)  
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |           
|                                      |                                                                        |                                                 |                                                        |                  |            | (dollars in thousands)     
|ASSETS                                |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Earning assets:                       |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      | Interest-bearing deposits in other banks                               |                                                 | $                                                      | 144,361          |            |                             | $          | 469     |         |          |        | 1.30    | %    |         | $         | 102,552    |            |            | $         | 493      |         |         |        | 1.93 | %   
|                                      | Federal funds sold and securities purchased under
agreements to resell |                                                 |                                                        | 230,673          |            |                             |            | 718     |         |          |        | 1.25    |      |         |           | 237,677    |            |            |           | 1,060    |         |         |        | 1.79 |     
|                                      | Investment securities (2),(3)                                          |                                                 |                                                        | 4,589,931        |            |                             |            | 45,615  |         |          |        | 3.99    |      |         |           | 3,218,464  |            |            |           | 40,178   |         |         |        | 5.01 |     
|                                      | Loans and leases (4),(5)                                               |                                                 |                                                        | 24,419,645       |            |                             |            | 373,178 |         |          |        | 6.13    |      |         |           | 24,210,725 |            |            |           | 406,248  |         |         |        | 6.73 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total earning assets                            |                                                        |                  | 29,384,610 |                             |            | $       | 419,980 |          |        |         | 5.73 |         |           |            | 27,769,418 |            |           | $        | 447,979 |         |        |      | 6.47 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Non-earning assets                    |                                                                        |                                                 | 5,725,680                                              |                  |            |                             |            |         |         |          |        |         |      |         | 5,632,232 |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total assets                                           |                  | $          | 35,110,290                  |            |         |         |          |        |         |      |         |           |            | $          | 33,401,650 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|LIABILITIES AND STOCKHOLDERS EQUITY  |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      | Interest-bearing deposits and liabilities:                             |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |     
|                                      |                                                                        | Deposits:                                       |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 | Domestic:                                              |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        | Interest-bearing |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |      |  
|                                      |                                                                        |                                                 |                                                        | Demand           |            | $                           | 271,246    |         |         | $        | 93     |         |      |         | 0.14      | %          |            | $          | 383,840   |          |         | $       | 262    |      |      |      | 0.27 | %
|                                      |                                                                        |                                                 |                                                        | Savings          |            |                             | 10,043,954 |         |         |          | 17,737 |         |      |         | 0.71      |            |            |            | 9,290,184 |          |         |         | 28,005 |      |      |      | 1.21 |  
|                                      |                                                                        |                                                 |                                                        | Time             |            |                             | 6,524,100  |         |         |          | 28,447 |         |      |         | 1.75      |            |            |            | 7,654,289 |          |         |         | 47,795 |      |      |      | 2.50 |  
|                                      |                                                                        |                                                 | Foreign                                                |                  |            | 582,817                     |            |         |         | 1,447    |        |         |      | 1.00    |           |            |            | 707,916    |           |          |         | 2,716   |        |      |      | 1.54 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total interest-bearing deposits                 |                                                        |                  | 17,422,117 |                             |            |         | 47,724  |          |        |         | 1.10 |         |           |            | 18,036,229 |            |           |          | 78,778  |         |        |      | 1.75 |     
|                                      |                                                                        | Short-term borrowings                           |                                                        |                  | 1,916,730  |                             |            |         | 3,538   |          |        |         | 0.74 |         |           |            | 2,422,460  |            |           |          | 10,263  |         |        |      | 1.70 |     
|                                      |                                                                        | Long-term debt and capital securities           |                                                        |                  | 3,608,297  |                             |            |         | 46,777  |          |        |         | 5.20 |         |           |            | 2,315,803  |            |           |          | 36,755  |         |        |      | 6.37 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total interest-bearing deposits and liabilities |                                                        |                  | 22,947,144 |                             |            |         | 98,039  |          |        |         | 1.71 |         |           |            | 22,774,492 |            |           |          | 125,796 |         |        |      | 2.22 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Interest rate spread                            |                                                        |                  |            |                             |            |         |         |          |        |         | 4.02 | %       |           |            |            |            |           |          |         |         |        |      | 4.25 | %   
|                                      |                                                                        | Noninterest-bearing deposits                    |                                                        |                  | 6,917,285  |                             |            |         |         |          |        |         |      |         |           |            | 5,848,034  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        | Other liabilities                               |                                                        |                  | 1,213,343  |                             |            |         |         |          |        |         |      |         |           |            | 1,057,518  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total liabilities                                      |                  |            | 31,077,772                  |            |         |         |          |        |         |      |         |           |            |            | 29,680,044 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        | Stockholders equity                            |                                                        |                  | 4,032,518  |                             |            |         |         |          |        |         |      |         |           |            | 3,721,606  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total liabilities and stockholders
equity             |                  | $          | 35,110,290                  |            |         |         |          |        |         |      |         |           |            | $          | 33,401,650 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Impact of noninterest-bearing sources |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          | 0.37   | %       |      |         |           |            |            |            |           |          |         |         | 0.40   | %   
|                                      |                                                                        |                                                 | Net interest income and margin on
total earning assets |                  |            |                             |            |         |         | 321,941  |        |         |      | 4.39    | %         |            |            |            |           |          |         | 322,183 |        |      |      | 4.65 | %   
|                                      |                                                                        | Tax equivalent adjustment                       |                                                        |                  |            |                             |            |         | 616     |          |        |         |      |         |           |            |            |            |           |          | 289     |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Net interest income                                    |                  |            |                             |            |         | $       | 321,325  |        |         |      |         |           |            |            |            |           |          | $       | 321,894 |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                             |            |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     



|(1) |  | Annualized.                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Average investment securities were computed based on historical amortized
cost, excluding the effects of SFAS No. 115 adjustments.                         
|   
|(3) |  | Average investment securities include trading assets.                                                                                                      
|   
|(4) |  | Nonaccruing loans and leases, and loans held for sale have been included
in the computations of average loan and lease balances.                           
|   
|(5) |  | Interest income for loans and leases included loan fees of $15.7 million
and $14.6 million for the three months ended June 30, 2003 and 2002,
respectively.

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)

|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |      |  
|------------------------------------- | ---------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------ | ---------------- | ---------- | ------------------------- | --------- | ------- | ------- | -------- | ------ | ------- | ---- | ------- | --------- | ---------- | ---------- | ---------- | --------- | -------- | ------- | ------- | ------ | ---- | ---- | ---- | ---- | -
|                                      |                                                                        |                                                 |                                                        |                  |            | Six Months Ended June 30,
|                                      |                                                                        |                                                 |                                                        |                  |            |                          
|                                      |                                                                        |                                                 |                                                        |                  |            | 2003                      |           | 2002   
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |        
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         | Interest |        |         |      |         |           |            |            |            |           | Interest |         |         |        |     
|                                      |                                                                        |                                                 |                                                        |                  |            | Average                   |           | Income/ |         | Yield/   |        | Average |      | Income/ |           | Yield/    
|                                      |                                                                        |                                                 |                                                        |                  |            | Balance                   |           | Expense |         | Rate (1) |        | Balance |      | Expense |           | Rate (1)  
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |           
|                                      |                                                                        |                                                 |                                                        |                  |            | (dollars in thousands)   
|ASSETS                                |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Earning assets:                       |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      | Interest-bearing deposits in other banks                               |                                                 | $                                                      | 126,468          |            |                           | $         | 884     |         |          |        | 1.41    | %    |         | $         | 127,179    |            |            | $         | 1,650    |         |         |        | 2.62 | %   
|                                      | Federal funds sold and securities purchased under
agreements to resell |                                                 |                                                        | 243,019          |            |                           |           | 1,541   |         |          |        | 1.28    |      |         |           | 221,462    |            |            |           | 1,926    |         |         |        | 1.75 |     
|                                      | Investment securities (2),(3)                                          |                                                 |                                                        | 4,364,192        |            |                           |           | 88,201  |         |          |        | 4.08    |      |         |           | 2,959,390  |            |            |           | 74,562   |         |         |        | 5.08 |     
|                                      | Loans and leases (4),(5)                                               |                                                 |                                                        | 24,233,673       |            |                           |           | 747,465 |         |          |        | 6.22    |      |         |           | 20,556,271 |            |            |           | 699,203  |         |         |        | 6.86 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total earning assets                            |                                                        |                  | 28,967,352 |                           |           | $       | 838,091 |          |        |         | 5.83 |         |           |            | 23,864,302 |            |           | $        | 777,341 |         |        |      | 6.57 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Non-earning assets                    |                                                                        |                                                 | 5,784,669                                              |                  |            |                           |           |         |         |          |        |         |      |         | 4,759,485 |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total assets                                           |                  | $          | 34,752,021                |           |         |         |          |        |         |      |         |           |            | $          | 28,623,787 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|LIABILITIES AND STOCKHOLDERS EQUITY  |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      | Interest-bearing deposits and liabilities:                             |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |     
|                                      |                                                                        | Deposits:                                       |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 | Domestic:                                              |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        | Interest-bearing |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |      |      |      |      |  
|                                      |                                                                        |                                                 |                                                        | Demand           |            | $                         | 269,054   |         |         | $        | 212    |         |      |         | 0.16      | %          |            | $          | 360,155   |          |         | $       | 481    |      |      |      | 0.27 | %
|                                      |                                                                        |                                                 |                                                        | Savings          |            |                           | 9,867,863 |         |         |          | 35,976 |         |      |         | 0.74      |            |            |            | 7,526,291 |          |         |         | 44,235 |      |      |      | 1.19 |  
|                                      |                                                                        |                                                 |                                                        | Time             |            |                           | 6,681,003 |         |         |          | 61,678 |         |      |         | 1.86      |            |            |            | 7,162,298 |          |         |         | 93,046 |      |      |      | 2.62 |  
|                                      |                                                                        |                                                 | Foreign                                                |                  |            | 595,496                   |           |         |         | 3,005    |        |         |      | 1.02    |           |            |            | 539,953    |           |          |         | 4,645   |        |      |      | 1.73 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total interest-bearing deposits                 |                                                        |                  | 17,413,416 |                           |           |         | 100,871 |          |        |         | 1.17 |         |           |            | 15,588,697 |            |           |          | 142,407 |         |        |      | 1.84 |     
|                                      |                                                                        | Short-term borrowings                           |                                                        |                  | 1,738,923  |                           |           |         | 7,234   |          |        |         | 0.84 |         |           |            | 1,879,629  |            |           |          | 16,056  |         |        |      | 1.72 |     
|                                      |                                                                        | Long-term debt and capital securities           |                                                        |                  | 3,593,042  |                           |           |         | 92,171  |          |        |         | 5.17 |         |           |            | 2,346,851  |            |           |          | 72,137  |         |        |      | 6.20 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Total interest-bearing deposits and liabilities |                                                        |                  | 22,745,381 |                           |           |         | 200,276 |          |        |         | 1.78 |         |           |            | 19,815,177 |            |           |          | 230,600 |         |        |      | 2.35 |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Interest rate spread                            |                                                        |                  |            |                           |           |         |         |          |        |         | 4.05 | %       |           |            |            |            |           |          |         |         |        |      | 4.22 | %   
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        | Noninterest-bearing deposits                    |                                                        |                  | 6,816,332  |                           |           |         |         |          |        |         |      |         |           |            | 4,839,063  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        | Other liabilities                               |                                                        |                  | 1,210,932  |                           |           |         |         |          |        |         |      |         |           |            | 951,984    |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total liabilities                                      |                  |            | 30,772,645                |           |         |         |          |        |         |      |         |           |            |            | 25,606,224 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        | Stockholders equity                            |                                                        |                  | 3,979,376  |                           |           |         |         |          |        |         |      |         |           |            | 3,017,563  |            |           |          |         |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Total liabilities and stockholders
equity             |                  | $          | 34,752,021                |           |         |         |          |        |         |      |         |           |            | $          | 28,623,787 |           |          |         |         |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|Impact of noninterest-bearing sources |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          | 0.39   | %       |      |         |           |            |            |            |           |          |         |         | 0.40   | %   
|                                      |                                                                        |                                                 | Net interest income and margin on
total earning assets |                  |            |                           |           |         |         | 637,815  |        |         |      | 4.44    | %         |            |            |            |           |          |         | 546,741 |        |      |      | 4.62 | %   
|                                      |                                                                        | Tax equivalent adjustment                       |                                                        |                  |            |                           |           |         | 1,251   |          |        |         |      |         |           |            |            |            |           |          | 367     |         |        |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     
|                                      |                                                                        |                                                 | Net interest income                                    |                  |            |                           |           |         | $       | 636,564  |        |         |      |         |           |            |            |            |           |          | $       | 546,374 |        |      |      |      |     
|                                      |                                                                        |                                                 |                                                        |                  |            |                           |           |         |         |          |        |         |      |         |           |            |            |            |           |          |         |         |        |     



|(1) |  | Annualized.                                                                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Average investment securities were computed based on historical amortized
cost, excluding the effects of SFAS No. 115 adjustments.                       
|   
|(3) |  | Average investment securities include trading assets.                                                                                                    
|   
|(4) |  | Nonaccruing loans and leases, and loans held for sale have been included
in the computations of average loan and lease balances.                         
|   
|(5) |  | Interest income for loans and leases included loan fees of $29.3 million
and $25.7 million for the six months ended June 30, 2003 and 2002,
respectively.

22



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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 and six months ended June 30, 2003, as compared to the
same periods in 2002:

|                            |                                      |                          |   |        |         |      |   |                |        |  |  |       |      |  
|--------------------------- | ------------------------------------ | ------------------------ | - | ------ | ------- | ---- | - | -------------- | ------ |  |  | ----- | ---- | -
|                            |                                      |                          |   | 2003   |         | 2002 |   | % Change      
|                            |                                      |                          |   |        |         |      |   |               
|                            |                                      |                          |   |        |         |      |   | (in thousands) |        |  |  |      
|Three Months Ended June 30, |                                      |                          |   |        |         |      |   |                |        |  |  |      
|                            | Service charges on deposit accounts  |                          | $ | 38,561 |         |      | $ | 36,561         |        |  |  | 5.5   | %   
|                            | Trust and investment services income |                          |   | 9,858  |         |      |   | 10,252         |        |  |  | (3.8  | )   
|                            | Other service charges and fees       |                          |   | 39,230 |         |      |   | 31,912         |        |  |  | 22.9  |     
|                            | Securities gains, net                |                          |   | 1,466  |         |      |   | 456            |        |  |  | 221.5 |     
|                            | Other                                |                          |   | 11,459 |         |      |   | 9,248          |        |  |  | 23.9  |     
|                            |                                      |                          |   |        |         |      |   |                |        |  |  |      
|                            |                                      | Total noninterest income |   | $      | 100,574 |      |   | $              | 88,429 |  |  |       | 13.7 | %
|                            |                                      |                          |   |        |         |      |   |                |        |  |  |      

|                          |                                      |                          |   |        |         |      |   |                |         |  |  |       |      |  
|------------------------- | ------------------------------------ | ------------------------ | - | ------ | ------- | ---- | - | -------------- | ------- |  |  | ----- | ---- | -
|                          |                                      |                          |   | 2003   |         | 2002 |   | % Change      
|                          |                                      |                          |   |        |         |      |   |               
|                          |                                      |                          |   |        |         |      |   | (in thousands) |         |  |  |      
|Six Months Ended June 30, |                                      |                          |   |        |         |      |   |                |         |  |  |      
|                          | Service charges on deposit accounts  |                          | $ | 75,590 |         |      | $ | 62,535         |         |  |  | 20.9  | %   
|                          | Trust and investment services income |                          |   | 19,365 |         |      |   | 18,392         |         |  |  | 5.3   |     
|                          | Other service charges and fees       |                          |   | 74,845 |         |      |   | 55,410         |         |  |  | 35.1  |     
|                          | Securities gains, net                |                          |   | 3,358  |         |      |   | 684            |         |  |  | 390.9 |     
|                          | Other                                |                          |   | 22,250 |         |      |   | 14,032         |         |  |  | 58.6  |     
|                          |                                      |                          |   |        |         |      |   |                |         |  |  |      
|                          |                                      | Total noninterest income |   | $      | 195,408 |      |   | $              | 151,053 |  |  |       | 29.4 | %
|                          |                                      |                          |   |        |         |      |   |                |         |  |  |      

As the table above shows in detail, noninterest income increased by 13.7% and
29.4% for the three and six months ended June 30, 2003, respectively, compared
to the same periods in 2002. The increase in service charges on deposit
accounts for the three months ended June 30, 2003 is primarily due to an
increase in the average deposits and modest repricing within the California
market. The increase in other service charges and fees compared to the same
period last year is primarily due to higher income from prepayment and penalty
fees on commercial loans, higher lease servicing income from the acquisition of
Trinity Capital in November 2002 higher account analysis fees and increased
debit card usage. The increase in other noninterest income is primarily due
to increased income from the sale of a lease.

Much of the increase in noninterest income for the six months ended June 30,
2003 from June 30, 2002 is attributable to the acquisition of UCB, which did
not take place until March 15, 2002. In large part due to this acquisition,
year-to-date average deposit balances increased approximately 18.6% for the six
months ended June 30, 2003 as compared to the same period in the prior year.
This increase in average deposits is the primary cause for the increase in
service charges on deposit accounts. The increase in other service charges and
fees is also partially attributable to the UCB acquisition, but other factors
explaining the increase include higher debit card income and higher income
from prepayment and penalty fees on commercial loans. Other noninterest income
increased for the six months ended June 30, 2003 compared to the six months
ended June 30, 2002 due to the UCB acquisition and a gain on the sale of a
lease.

Approximately $1.5 million and $3.4 million in gains on the sale of investment
securities were recognized in the three and six months ended June 30, 2003,
respectively.




NONINTEREST EXPENSE

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

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)

|                            |                                     |                           |   |                |         |      |   |          |         |  |  |       |     |  
|--------------------------- | ----------------------------------- | ------------------------- | - | -------------- | ------- | ---- | - | -------- | ------- |  |  | ----- | --- | -
|                            |                                     |                           |   | 2003           |         | 2002 |   | % Change
|                            |                                     |                           |   |                |         |      |   |         
|                            |                                     |                           |   | (in thousands)
|Three Months Ended June 30, |                                     |                           |   |                |         |      |   |          |         |  |  |      
|                            | Salaries and wages                  |                           | $ | 81,977         |         |      | $ | 86,463   |         |  |  | (5.2  | )% 
|                            | Employee benefits                   |                           |   | 39,390         |         |      |   | 35,675   |         |  |  | 10.4  |    
|                            | Occupancy expense                   |                           |   | 22,594         |         |      |   | 23,495   |         |  |  | (3.8  | )  
|                            | Outside services                    |                           |   | 18,274         |         |      |   | 19,770   |         |  |  | (7.6  | )  
|                            | Intangible amortization             |                           |   | 5,764          |         |      |   | 5,763    |         |  |  |      |    
|                            | Equipment expense                   |                           |   | 12,437         |         |      |   | 14,480   |         |  |  | (14.1 | )  
|                            | Stationery and supplies             |                           |   | 6,416          |         |      |   | 7,389    |         |  |  | (13.2 | )  
|                            | Advertising and promotion           |                           |   | 8,454          |         |      |   | 8,034    |         |  |  | 5.2   |    
|                            | Restructuring and integration costs |                           |   |               |         |      |   | 2,738    |         |  |  |      |    
|                            | Other                               |                           |   | 34,483         |         |      |   | 25,013   |         |  |  | 37.9  |    
|                            |                                     |                           |   |                |         |      |   |          |         |  |  |      
|                            |                                     | Total noninterest expense |   | $              | 229,789 |      |   | $        | 228,820 |  |  |       | 0.4 | %
|                            |                                     |                           |   |                |         |      |   |          |         |  |  |      

|                          |                                     |                           |   |                |         |      |   |          |         |  |  |      |      |  
|------------------------- | ----------------------------------- | ------------------------- | - | -------------- | ------- | ---- | - | -------- | ------- |  |  | ---- | ---- | -
|                          |                                     |                           |   | 2003           |         | 2002 |   | % Change
|                          |                                     |                           |   |                |         |      |   |         
|                          |                                     |                           |   | (in thousands)
|Six Months Ended June 30, |                                     |                           |   |                |         |      |   |          |         |  |  |     
|                          | Salaries and wages                  |                           | $ | 166,639        |         |      | $ | 146,557  |         |  |  | 13.7 | %   
|                          | Employee benefits                   |                           |   | 77,036         |         |      |   | 59,157   |         |  |  | 30.2 |     
|                          | Occupancy expense                   |                           |   | 44,914         |         |      |   | 39,109   |         |  |  | 14.8 |     
|                          | Outside services                    |                           |   | 35,841         |         |      |   | 33,152   |         |  |  | 8.1  |     
|                          | Intangible amortization             |                           |   | 11,527         |         |      |   | 8,520    |         |  |  | 35.3 |     
|                          | Equipment expense                   |                           |   | 23,593         |         |      |   | 22,209   |         |  |  | 6.2  |     
|                          | Stationery and supplies             |                           |   | 13,434         |         |      |   | 13,074   |         |  |  | 2.8  |     
|                          | Advertising and promotion           |                           |   | 13,657         |         |      |   | 12,691   |         |  |  | 7.6  |     
|                          | Restructuring and integration costs |                           |   |               |         |      |   | 8,753    |         |  |  |     |     
|                          | Other                               |                           |   | 63,808         |         |      |   | 44,696   |         |  |  | 42.8 |     
|                          |                                     |                           |   |                |         |      |   |          |         |  |  |     
|                          |                                     | Total noninterest expense |   | $              | 450,449 |      |   | $        | 387,918 |  |  |      | 16.1 | %
|                          |                                     |                           |   |                |         |      |   |          |         |  |  |     

As the table above shows in detail, the change in noninterest expense from the
previous year was not material in the second quarter. The increase in benefits
is primarily attributable to higher workers compensation insurance, higher
group healthcare insurance and increased retirement plan expense. The increase
in other expense is primarily attributable to higher depreciation expense on
software, higher general liability and property insurance, increased charitable
contributions and a $4.7 million charge in the second quarter of 2003 for
restructuring a leveraged lease in FHL Lease Holding Company, Inc.

In the six months ended June 30, 2003 noninterest expense increased 16.1%
compared to the same period in 2002. The increase in noninterest expense is
predominately due to the UCB acquisition, which was finalized on March 15,
2002. The increase in workers compensation insurance, group healthcare
insurance and retirement plan expenses also contributed to the increase in
employee benefits. Increases in other expenses include certain fees and
software depreciation that we incurred this year that were not incurred in 2002
as well as the leveraged lease restructuring charge mentioned above.




OPERATING SEGMENT RESULTS

Bank of the West

Regional Bankingsegments net income was $29.4 million in the second quarter,
compared with $34.7 million for the same period in 2002, a decrease of 15.3%.
Net interest income decreased 9.4% from $133.2 million in the three months
ended June 30, 2002 to $120.7 million this year. Noninterest income increased
5.6% in the three months ended June 30, 2003 from the same period last year.
Noninterest expense decreased 2.1%. The provision for credit allowances
increased 65.4% from $2.6 million to $4.3 million.

Charges on deposit accounts increased 6% in the three months ended June 30, 2003
compared to the same quarter last year primarily due to a 3.8% increase in
the number of personal and business demand deposit accounts as well as some modest
repricing efforts in the

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##### Table of Contents



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

California markets. Other service charges increased
$1.9 million or 34% in the three months ended June 30, 2003 from the same
period last year due to interchange revenue and increased volume in debit card
usage with the addition of the MasterCard® product and the former UCB
customer base. Occupancy expenses decreased in the second quarter of 2003
compared to the corresponding period last year due to the consolidation of 15
branch sites. Marketing expenses increased $1.4 million or 34% in the three
months ended June 30, 2003 compared to last year due to increased spending on
name recognition, promotions and campaign efforts to penetrate Southern
California geographical markets and retain the acquired UCB customer base.
Increases in other expenses for this period were due to accounting process
changes for acquired UCB branch activities, such as the recording of certain losses and legal expenses.

Average loans outstanding decreased 10.8% from the second quarter of 2002 while
average assets and deposits remained relatively flat from the same quarter last
year. The decline in average loans was due to a $292 million decline in
installment loans and a $240 million decline in commercial loans.

Net income for the first half of 2003
was $59.8 million compared to $58.8 million for the
six months ended June 30, 2002, an increase of 1.7%. Net interest income
increased 10.0% from $220.6 million in the six months ended June 30, 2002 to
$242.6 million year-to-date this year, primarily due to the acquisition of UCB
branches on March 15, 2002. Noninterest income increased 23.9% compared to the
corresponding period last year. Noninterest expense increased $33.6 million
or 18.4% in the six months ended
June 30, 2003 from the same period last year. The provision for credit losses
increased $3.4 million primarily from the UCB merger and the significant
increase in the size of our loan portfolio.

Noninterest income categories,
including service charges on deposit accounts and trust and
investment income, increased during the six months ended
June 30, 2003 over the same period last year due, in part to the
UCB acquisition. Other
service charges increased $6.8 million or 62% in the six months ended June 30,
2003 from the corresponding period last year, $3.4 million was due to debit
interchange income, reflecting the combined VISA® and acquired MasterCard®
accounts. Noninterest expense increased in the six months ended June 30,
2003 over this period last year primarily due to the acquisition of UCB and in
part to a 22% rise in group insurance costs.

Average deposit balances in the six
months ended June 30, 2003 grew approximately 19.0% over last
year. Deposit margins have decreased from 2.65% to 2.21% in the
six months ended June 30, 2003 from the same period in the prior
year due to the record low interest
rate environment which has significantly reduced the value of core-deposit
products. Although the record low interest rate environment has also
significantly increased early loan prepayments as retail customers sought to
refinance their borrowings with lower rate loans, loan margins have increased
slightly from 2.48% to 2.66%.

Commercial Bankingsegments net income increased 22.3% in the three months
ended June 30, 2003 from $32.8 million in the three months ended June 30, 2002
to $40.1 million this year. Net interest income increased 3.6%. Noninterest
income increased $4.3 million or 44.3% in this quarter compared to the second
quarter of 2002. Noninterest expense increased 6.8% and the provision for
credit losses decreased significantly.

Net interest income increased in the three months ended June 30, 2003 despite a
declining interest rate environment that eroded margins on deposits. Net
interest income increased in the second quarter due to a 41 basis point
increase over the prior quarter in the margin on loans and leases, while yields
on deposits dropped 141 basis points due to lower transfer pricing rates from
the second quarter of 2002. The increase in loan and lease margins reflects a
change in portfolio mix between loans and leases, with higher yielding leases
obtained through the Trinity Capital acquisition replacing lower yielding
loans. The increase in the three months ended June 30, 2003 from the same period in the previous year in noninterest
income was primarily due to a $1.7 million increase to portfolio servicing
revenue in Trinity Capital. Prepayment penalty fees and increased loan fees
associated with portfolio growth in Small Business Administration (SBA),
Church Lending, and Healthcare also contributed to the increase. Noninterest
expense increased in the second quarter compared to the corresponding period
last year due to the acquisition of Trinity Capital.

Net income for the six months ended June 30, 2003 increased $28.7 million or
61.2% from $46.9 million in the first half of 2002 to $75.6 million this year.
Noninterest income also increased significantly from $11.6 million last year to
$25.4 million in the six months ended June 30, 2003. Noninterest expense
increased $21.3 million or 55.2% and the provision for credit losses decreased
significantly.

The Commercial Banking Segment achieved growth in loans and growth in net
income due to strong performance in SBA, Church Lending, Healthcare, and
Business Services in the six months ended June 30, 2003. Other
areas,
primarily commercial, agribusiness and real estate lending, declined in the
first half of 2003, compared to 2002. The decline was largely due to lower net
interest margins

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##### Table of Contents



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

on deposits. Careful management of asset quality resulted in
a decline in average loans and leases from the six months ended
June 30, 2002 to the corresponding period in 2003. Noninterest income increased 119.0% in the six months ended June 30,
2003 from the same period a year ago due to loan fees (an increase of $3.0
million) and deposit services (an increase of $3.2 million) resulting from the
UCB acquisition, portfolio servicing and other leasing fees due to the Trinity
Capital acquisition (an increase of $3.0 million) and loan fees driven by loan
growth in SBA, Church Lending and Healthcare (an increase of $1.8 million).

Acquisitions of UCB in April 2002 and Trinity Capital in November 2002
resulted in increases of 34.9% in average loans and 98.4% in average deposits
in the six months ended June 30, 2003. The Commercial Banking Segment
continues to pursue a strategy of leveraging efficiencies gained through the
expanded resources resulting from the UCB acquisition, while focusing on niche
markets where there is competitive advantage, such as equipment leasing, SBA
loans and religious lending.

Consumer Financesegments net income for the three months ended June 30, 2003
was $13.2 million compared to $11.0 million a year ago. Net interest income in
the second quarter 2003 was $50.7 million, compared with $43.3 million for the
same period in 2002, an increase of 17.1%. Noninterest income increased $0.6
million or 20.7%. Noninterest expense increased from $14.1 million in the
three months ended June 30, 2003 to $15.6 million this year. Our provision for
credit allowances also increased 22.6% in the second quarter of this year
compared to the second quarter of 2002.

The Consumer Finance Segment remains very competitively priced in the indirect
lending market. Noninterest income in the three months ended June 30, 2003
was $3.5 million, compared with $2.9 million for the same period in 2002. This
increase was primarily due to gains on sales of loans through our Essex
subsidiary and an increase in loan servicing related fees. Noninterest expense
for the second quarter 2003 increased by 10.6% over the same period in 2002.
This increase was primarily due to an increase in the cost of employee benefits
and an increase in the use of outside services related to higher production
volumes. Other expense categories experienced a decrease due to
efficiency gains.

Net income for the six months ended
June 30, 2003 was $27.8 million compared to $22.3
million in the same period a year ago. Net interest income for the six months
ended June 30, 2003 was $100.4 million, compared to $85.1 million for the
same period in 2002, an increase of 18.0%. Noninterest income increased 14.8%
and noninterest expense increased 9.2% in the first half of 2003 compared to
the corresponding period in 2002. The provision for credit losses increased
$4.8 million from $24.8 million in the first half of 2002 to $29.6 million in
2003.

Noninterest income for the six months ended June 30, 2003 was $6.2
million, compared with $5.4 million for the same period in 2002. This increase
was primarily due to gains on sales of loans through our Essex subsidiary which
has experienced an 8% increase in production and a 35% increase in income from
other loan servicing related fees. Noninterest expense for the six
months ended
June 30, 2003 increased by $2.6 million from the same period in 2002. This
increase was primarily due to higher staff and occupancy requirements
associated with growth and the UCB acquisition. Additionally, increases in the
cost of employee benefits and increases in the use of outside services related
to higher production volumes contributed to the higher expenses in 2003.

Average assets for the six months ended June 30, 2003 were $7.3 billion,
compared to $6.4 billion, an increase of $0.9 billion, or 14.1% in the six
months ended June 30, 2002. This increase is due to both the UCB acquisition
that took place in 2002 and increased indirect loan production.

First Hawaiian Bank

Retail Bankingsegments net income for the second quarter ending June 30, 2003
decreased $0.3 million, or 1.4%. Net interest income increased by $1.1
million, or 1.7% for the second quarter of 2003 compared to the same period in
2002. Noninterest income for the second quarter increased by $0.1 million, or
0.6%. Noninterest expense for the second quarter increased by $1.8 million, or 4.1%
compared to the prior year. The provision for credit losses for the three
months ended June 30, 2003 decreased by $0.1 million, or
5.3%, compared to the prior year.

Retail Banking segments net income for the six months ended June 30, 2003
decreased $0.1 million, or 0.2% compared to the same period in 2002. Net
interest income for the six months ended June 30, 2003 decreased $1.2 million,
or 0.9% compared to the same period in the prior

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

year. The decrease was primarily due to the
transfer of loans to the Commercial Banking Segment in April 2002. Noninterest
income for the six months ended June 30, 2003 increased
$1.6 million, or 5.0%,
compared to the prior year. The increase was due to higher account analysis
fees. Noninterest expense for the six months ended June 30, 2003 increased
$1.9 million or 2.2% compared to the prior year. The increase was primarily
due to higher retirement plan expenses. The provision for credit losses for
the first half of 2003 decreased $0.6 million, or 14.6% compared to the prior
year.

Consumersegments net income for the three months ended June 30, 2003
increased $3.4 million, or 52.3% compared to the prior year. Net interest
income for the second quarter increased by $3.7 million, or
21.0%, compared to
the prior year. Noninterest income for the three months ended June 30, 2003
increased $2.9 million, or 51.8%, compared to the prior year. Noninterest
expense for the second quarter ending June 30, 2003 increased $1.2 million, or
11.7%, compared to the same period in the prior year. There was no change in
the provision for credit losses in the second quarter of 2003 compared to the
prior year.

Consumer segments net income for the six months ended June 30, 2003 increased
$6.2 million, or 46.6%, compared to the prior year. Net interest income for the
six months ended June 30, 2003 increased by $6.2 million or 17.7% compared to
the prior year. The increase was primarily due to higher loan volume and a
wider margin. Noninterest income for the first half of 2003 increased $5.9
million, or 51.3%, compared to the same period in the prior year. The increase
was primarily due to higher merchant service income and higher gains on sales
of loans. Noninterest expense for the six months ended June 30, 2003 increased
$2.3 million, or 11.2%, compared to the corresponding period last year. The
increase was primarily due to increases in incentive compensation, temporary
help salaries and higher retirement plan expense. Provision for credit losses
in the first six months of 2003 compared to the same period in the prior year
increased $0.1 million, or 2.2%.

Commercial Bankingsegments net income for the three months ended June 30,
2003 increased $0.2 million, or 4.3%, compared to the same period in the prior
year. Net interest income for the second quarter increased $0.1 million, or
1.3% compared to the corresponding period last year. Noninterest income for
the second quarter of 2003 compared to the prior year decreased $0.1 million,
or 5.9%. Noninterest expense for the three months ended June 30, 2003
increased $0.3 million, or 15%, compared to the same period in the prior year.

Commercial Banking segments net income for the six months ended June 30, 2003
increased $1.3 million, or 14.9%, compared to the same period in the prior
year. Net interest income for the first half of 2003 increased $1.9 million,
or 14.1%, compared to the same period last year. The increase was primarily
due to the transfer of loans from the Retail Banking Segment, higher volume and
a wider margin. Noninterest income for the six months ended June 30, 2003
compared to the prior year did not change. Noninterest expense for the six
months ended June 30, 2003 increased $0.8 million, or 22.2%, compared to the
same period in the prior year.

Financial Managementsegments net income was $1.1 million for the second
quarter of 2003, compared to $0.5 million for the same period in 2002, an
increase of 120.0%. Net interest income for the three months of 2003 increased
$0.1 million compared to the same period in the prior year. Noninterest income
increased $1.2 million, or 17.9%, for the second quarter of 2003 compared to the
same period in the prior year. Noninterest expense for the second quarter
ending June 30, 2003 increased $1 million, or 16.9%, compared to the
corresponding quarter last year.

Net income for the six months ended June 30, 2003 was $1.5 million, an increase
of $0.2 million, or 15.4%, for the same period in 2002. Net interest income for
the six months ended June 30, 2003 increased $0.1 million compared to the same
period in the prior year. Noninterest income for the first six months of 2003
increased $0.8 million, or 5.7%, compared to the same period in 2002.
Noninterest expense for the six months ended June 30, 2003 increased $1.3
million, or 10.9%, compared to the same period last year. The increase was
primarily due to higher salaries and retirement plan expense.




INVESTMENT SECURITIES

Available-for-Sale

The fair value of available-for-sale securities at June 30, 2003 increased by
approximately $1.7 billion, or 49.8%, compared to the value at June 30, 2002
and increased by approximately $1.2 billion, or 30.5%, compared to December 31,
2002. While we still continue to originate and purchase loans, we have
increased our purchases of investment securities as the slow economy has not
been conducive to significant loan originations.

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

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:

|                  |  |          |           |              |  |                |           |   |  |   |           |  
|----------------- |  | -------- | --------- | ------------ |  | -------------- | --------- | - |  | - | --------- | -
|                  |  | June 30, |           | December 31, |  | June 30,      
|                  |  | 2003     |           | 2002         |  | 2002          
|                  |  |          |           |              |  |               
|                  |  |          |           |              |  | (in thousands) |           |   |  |  
|Amortized cost    |  | $        | 5,053,764 |              |  | $              | 3,860,297 |   |  | $ | 3,384,052 |  
|Unrealized gains  |  |          | 92,682    |              |  |                | 82,838    |   |  |   | 51,979    |  
|Unrealized losses |  |          | (2,591    | )            |  |                | (2,366    | ) |  |   | (2,293    | )
|                  |  |          |           |              |  |                |           |   |  |   |           |  
|Fair value        |  | $        | 5,143,855 |              |  | $              | 3,940,769 |   |  | $ | 3,433,738 |  
|                  |  |          |           |              |  |                |           |   |  |   |           |  

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

|                      |  |                    |       |                  |  |                |     |      |  |   |       |  |  |   |     |  
|--------------------- |  | ------------------ | ----- | ---------------- |  | -------------- | --- | ---- |  | - | ----- |  |  | - | --- | -
|                      |  | Three months Ended |       | Six months Ended
|                      |  | June 30,           |       | June 30,        
|                      |  |                    |       |                 
|                      |  | 2003               |       | 2002             |  | 2003           |     | 2002
|                      |  |                    |       |                  |  |                |     |     
|                      |  |                    |       |                  |  | (in thousands) |     |      |  |  
|Realized gains        |  | $                  | 1,466 |                  |  | $              | 481 |      |  | $ | 3,358 |  |  | $ | 722 |  
|Realized losses       |  |                    |      |                  |  |                | (25 | )    |  |   |      |  |  |   | (38 | )
|                      |  |                    |       |                  |  |                |     |      |  |   |       |  |  |   |     |  
|Securities gains, net |  | $                  | 1,466 |                  |  | $              | 456 |      |  | $ | 3,358 |  |  | $ | 684 |  
|                      |  |                    |       |                  |  |                |     |      |  |   |       |  |  |   |     |  




LOANS AND LEASES

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

|                                       |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |      |       |  
|-------------------------------------- | ------------ | ----------------------------------- | --------- | ------------- | ---------- | ----------------- | ---- | ------------- | ----- | - | --------- | ---------------------- | ---------- | - | ---- | ---- | ----- | - | --------- | --------- | ---------- |  | ---- | ---- | ----- | -
|                                       |              |                                     |           | June 30, 2003 |            | December 31, 2002 |      | June 30, 2002
|                                       |              |                                     |           |               |            |                   |      |              
|                                       |              |                                     |           | Amount        |            | %                 |      | Amount        |       | % |           | Amount                 |            | %
|                                       |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |  
|                                       |              |                                     |           |               |            |                   |      |               |       |   |           | (dollars in thousands) |            |   |      |      |       |   |           |          
|Commercial, financial and agricultural |              | $                                   | 4,644,481 |               |            |                   | 18.6 | %             |       | $ | 4,802,581 |                        |            |   | 19.9 | %    |       | $ | 4,904,660 |           |            |  | 20.3 | %   
|Real estate:                           |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       | Commercial   |                                     |           | 4,950,251     |            |                   |      | 19.8          |       |   |           | 4,806,220              |            |   |      | 19.9 |       |   |           | 4,814,826 |            |  |      | 20.0 |      
|                                       | Construction |                                     |           | 912,058       |            |                   |      | 3.6           |       |   |           | 971,861                |            |   |      | 4.0  |       |   |           | 1,081,779 |            |  |      | 4.5  |      
|                                       | Residential: |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |      |      
|                                       |              | Insured, guaranteed or conventional |           |               | 4,287,397  |                   |      |               | 17.1  |   |           |                        | 4,022,810  |   |      |      | 16.7  |   |           |           | 3,875,406  |  |      |      | 16.1  |  
|                                       |              | Home equity credit lines            |           |               | 722,171    |                   |      |               | 2.9   |   |           |                        | 726,535    |   |      |      | 3.0   |   |           |           | 655,721    |  |      |      | 2.7   |  
|                                       |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total real estate loans             |           |               | 10,871,877 |                   |      |               | 43.4  |   |           |                        | 10,527,426 |   |      |      | 43.6  |   |           |           | 10,427,732 |  |      |      | 43.3  |  
|                                       |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|Consumer                               |              |                                     | 6,765,184 |               |            |                   | 27.1 |               |       |   | 6,021,510 |                        |            |   | 25.0 |      |       |   | 6,105,010 |           |            |  | 25.3 |     
|Lease financing                        |              |                                     | 2,371,711 |               |            |                   | 9.5  |               |       |   | 2,398,681 |                        |            |   | 9.9  |      |       |   | 2,297,967 |           |            |  | 9.5  |     
|Foreign                                |              |                                     | 355,167   |               |            |                   | 1.4  |               |       |   | 395,889   |                        |            |   | 1.6  |      |       |   | 385,036   |           |            |  | 1.6  |     
|                                       |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total loans and leases              |           |               | 25,008,420 |                   |      |               | 100.0 | % |           |                        | 24,146,087 |   |      |      | 100.0 | % |           |           | 24,120,405 |  |      |      | 100.0 | %
|                                       |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |      |       |  
|Less allowance for credit losses       |              |                                     | 391,518   |               |            |                   |      |               |       |   | 384,081   |                        |            |   |      |      |       |   | 387,272   |           |            |  |      |     
|                                       |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total net loans and leases          |           | $             | 24,616,902 |                   |      |               |       |   |           | $                      | 23,762,006 |   |      |      |       |   |           | $         | 23,733,133 |  |      |      |       |  
|                                       |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|Total loans and leases to:             |              |                                     |           |               |            |                   |      |               |       |   |           |                        |            |   |      |      |       |   |           |           |            |  |      |     
|                                       |              | Total assets                        |           |               |            |                   |      |               | 68.6  | % |           |                        |            |   |      |      | 69.5  | % |           |           |            |  |      |      | 71.0  | %
|                                       |              | Total earning assets                |           |               |            |                   |      |               | 81.7  | % |           |                        |            |   |      |      | 84.3  | % |           |           |            |  |      |      | 85.8  | %
|                                       |              | Total deposits                      |           |               |            |                   |      |               | 99.9  | % |           |                        |            |   |      |      | 98.3  | % |           |           |            |  |      |      | 100.0 | %

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 3.7%
increase in total loans and leases from June 30, 2002 and a 3.6% increase
compared to December 31, 2002.

When comparing the current period to December 31, 2002 there was a decrease of
$158.1 million or 3.3%, in commercial lending, offset by increases of $344.5
million, or 3.3% in real estate loans and $743.7 million, or 12.4% in consumer
loans. When comparing the current period to June 30, 2002 the decrease in
construction real estate loans of $169.7 million, or 15.7% was substantially
offset

28



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

by increases of $441.1 million, or 4.3%, in total real estate loans and
$660.2 million, or 10.8% 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 June
30, 2003 decreased $40.7 million, or 10.3%, from December 31, 2002 and
decreased $29.9 million, or 7.8%, from June 30, 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 June 30, 2003, we did
not have a concentration of loans greater than 10% of total loans which is not
otherwise disclosed as a category of loans as shown in the table above.

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

|                                                 |                              |  |                          |           |      |  |   |           | 
|------------------------------------------------ | ---------------------------- |  | ------------------------ | --------- | ---- |  | - | --------- | 
|                                                 |                              |  | Notional/Contract Amount
|                                                 |                              |  |                         
|                                                 |                              |  | 2003                     |           | 2002
|                                                 |                              |  |                          |           |     
|                                                 |                              |  | (in thousands)          
|Contractual amounts which represent credit risk: |                              |  |                          |           |      |  |   |          
|                                                 | Commitments to extend credit |  | $                        | 7,514,519 |      |  | $ | 8,139,604 | 
|                                                 | Standby letters of credit    |  |                          | 802,476   |      |  |   | 809,683   | 
|                                                 | Commercial letters of credit |  |                          | 81,613    |      |  |   | 82,437    | 

29



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




NONPERFORMING ASSETS

Nonperforming assets at June 30, 2003, December 31, 2002 and June 30, 2002 were
as follows:

|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |        |         |        |         |  
|----------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------- | -------------------------------------- | ------------ | ------------------------------------ | ------ | ---------------------- | ------- | ------------ | ------- | -------- | ------- | ------ | ------- | ------ | ------- | -
|                                                                                                                              |                                                           |                                        |              |                                      |        | June 30,               |         | December 31, |         | June 30,
|                                                                                                                              |                                                           |                                        |              |                                      |        | 2003                   |         | 2002         |         | 2002    
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |         
|                                                                                                                              |                                                           |                                        |              |                                      |        | (dollars in thousands)
|Nonperforming Assets:                                                                                                         |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              | Nonaccrual:                                               |                                        |              |                                      |        |                        |         |              |         |          |         |        |        
|                                                                                                                              |                                                           | Commercial, financial and agricultural |              | $                                    | 92,502 |                        |         | $            | 145,222 |          |         | $      | 152,280 |       
|                                                                                                                              |                                                           | Real estate:                           |              |                                      |        |                        |         |              |         |          |         |        |         |       
|                                                                                                                              |                                                           |                                        | Commercial   |                                      |        | 44,204                 |         |              |         | 47,377   |         |        |         | 43,061 |        
|                                                                                                                              |                                                           |                                        | Residential: |                                      |        |                        |         |              |         |          |         |        |         |        |        
|                                                                                                                              |                                                           |                                        |              | Insured, guaranteed, or conventional |        |                        | 7,909   |              |         |          | 5,460   |        |         |        | 10,551  |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Total real estate loans              |        |                        | 52,113  |              |         |          | 52,837  |        |         |        | 53,612  |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           | Consumer                               |              |                                      | 3,455  |                        |         |              | 4,769   |          |         |        | 2,856   |       
|                                                                                                                              |                                                           | Lease financing                        |              |                                      | 12,933 |                        |         |              | 11,532  |          |         |        | 9,193   |       
|                                                                                                                              |                                                           | Foreign                                |              |                                      | 8,072  |                        |         |              | 10,088  |          |         |        | 8,398   |       
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Total nonaccrual loans and leases    |        |                        | 169,075 |              |         |          | 224,448 |        |         |        | 226,339 |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              | Restructured:                                             |                                        |              |                                      |        |                        |         |              |         |          |         |        |        
|                                                                                                                              |                                                           | Commercial, financial and agricultural |              |                                      | 417    |                        |         |              | 698     |          |         |        | 1,231   |       
|                                                                                                                              |                                                           | Real estate:                           |              |                                      |        |                        |         |              |         |          |         |        |         |       
|                                                                                                                              |                                                           |                                        | Commercial   |                                      |        | 510                    |         |              |         | 694      |         |        |         | 1,259  |        
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Total real estate loans              |        |                        | 510     |              |         |          | 694     |        |         |        | 1,259   |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Total restructured loans and leases  |        |                        | 927     |              |         |          | 1,392   |        |         |        | 2,490   |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Total nonperforming loans and leases |        |                        | 170,002 |              |         |          | 225,840 |        |         |        | 228,829 |  
|                                                                                                                              | Other real estate owned and repossessed personal
property |                                        |              | 18,050                               |        |                        |         | 19,613       |         |          |         | 22,566 |        
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Total nonperforming assets           |        | $                      | 188,052 |              |         | $        | 245,453 |        |         | $      | 251,395 |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |        |         |       
|Past
due loans and leases(1):                                                                                                 |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              | Commercial, financial and agricultural                    |                                        | $            | 7,713                                |        |                        | $       | 9,005        |         |          | $       | 22,248 |        
|                                                                                                                              | Real estate:                                              |                                        |              |                                      |        |                        |         |              |         |          |         |        |        
|                                                                                                                              |                                                           |                                        | Commercial   |                                      |        | 6,820                  |         |              |         | 2,952    |         |        |         | 1,187  |        
|                                                                                                                              |                                                           |                                        | Construction |                                      |        | 907                    |         |              |         |         |         |        |         |       |        
|                                                                                                                              |                                                           |                                        | Residential: |                                      |        |                        |         |              |         |          |         |        |         |        |        
|                                                                                                                              |                                                           |                                        |              | Insured, guaranteed, or conventional |        |                        | 3,029   |              |         |          | 5,082   |        |         |        | 1,375   |  
|                                                                                                                              |                                                           |                                        |              | Home equity credit lines             |        |                        | 419     |              |         |          | 661     |        |         |        | 456     |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Total real estate loans              |        |                        | 11,175  |              |         |          | 8,695   |        |         |        | 3,018   |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              | Consumer                                                  |                                        |              | 1,769                                |        |                        |         | 1,984        |         |          |         | 2,522  |        
|                                                                                                                              | Lease financing                                           |                                        |              | 4                                    |        |                        |         | 232          |         |          |         | 98     |        
|                                                                                                                              | Foreign                                                   |                                        |              | 7                                    |        |                        |         | 1,181        |         |          |         | 274    |        
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Total past due loans and leases      |        | $                      | 20,668  |              |         | $        | 21,097  |        |         | $      | 28,160  |  
|                                                                                                                              |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |        |         |       
|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  |        |                        | 0.75    | %            |         |          | 1.02    | %      |         |        | 1.04    | %
|                                                                                                                              |                                                           |                                        |              | Including past due loans and leases  |        |                        | 0.83    | %            |         |          | 1.10    | %      |         |        | 1.16    | %
|Nonperforming assets to total assets (end of period):                                                                         |                                                           |                                        |              |                                      |        |                        |         |              |         |          |         |       
|                                                                                                                              |                                                           |                                        |              | Excluding past due loans and leases  |        |                        | 0.52    | %            |         |          | 0.71    | %      |         |        | 0.74    | %
|                                                                                                                              |                                                           |                                        |              | Including past due loans and leases  |        |                        | 0.57    | %            |         |          | 0.77    | %      |         |        | 0.82    | %



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

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

Nonperforming assets at June 30, 2003 were $188.1 million, or 0.75%, of total
loans and leases and other real estate owned and repossessed personal property
(OREO), compared to 1.02% at December 31, 2002 and 1.04% at June 30, 2002.
Nonperforming assets at June 30, 2003 were 0.52% of total assets, compared to
0.71% at December 31, 2002 and 0.74% at June 30, 2002.

Nonperforming assets at June 30, 2003 decreased by $57.4 million, or 23.4%,
from December 31, 2002 and decreased by $63.3 million, or 25.2%, from June 30,
2002. These decreases were primarily due to substantial decreases in
nonaccrual loans for commercial lending resulting from resolution of problem
relationships. The decrease from December 31, 2002 was slightly offset by an
increase in nonaccrual residential real estate loans. Those nonaccrual loans
increased $2.4 million, or 44.9% since December 31, 2002 but decreased $2.6
million, or 25.0% since June 30, 2002.

Foreign nonperforming assets decreased
at June 30, 2003 by $2.0 million, or
20.0% from December 31, 2002 and by $0.3 million, or 3.9% from June 30, 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 (1.4%) of our total loan portfolio at June 30, 2003.

We generally place a loan or lease on nonaccrual status when we believe that
collection of principal or interest has become doubtful or when loans and
leases are 90 days past due as to principal or interest, unless they are well
secured and in the process of collection. We may make an exception to the
general 90-day-past-due rule when the fair value of the collateral exceeds our
recorded investment in the loan 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 $20.7
million at June 30, 2003 a decrease of $0.4 million, or 2.0%, from December 31,
2002 and a decrease of $7.5 million, or 26.6%, from June 30, 2002. The
decrease at June 30, 2003 compared to December 31, 2002 was primarily due to
real estate-commercial and commercial, financial and agricultural loans. The
decrease at June 30, 2003 compared to June 30, 2002 was primarily due to
commercial, financial and agricultural 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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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 |         | Six Months Ended
|                                                                               |                                |                                                      |                                                             |         | June 30,           |         | June 30,        
|                                                                               |                                |                                                      |                                                             |         |                    |         |                 
|                                                                               |                                |                                                      |                                                             |         | 2003               |         | 2002             |         | 2003                   |         | 2002      
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |           
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         | (dollars in thousands) |         |            |         |       
|Loans and leases outstanding (end of period)                                   |                                | $                                                    | 25,008,420                                                  |         |                    | $       | 24,120,405       |         |                        | $       | 25,008,420 |         |        | $       | 24,120,405 |        
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|Allowance for credit losses:                                                   |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               | Balance at beginning of period |                                                      | $                                                           | 396,049 |                    |         | $                | 383,003 |                        |         | $          | 384,081 |        |         | $          | 194,654 |       
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               | Allowance purchased            |                                                      |                                                             |        |                    |         |                  |        |                        |         |            |        |        |         |            | 210,000 |       
|                                                                               | Loans and leases charged off:  |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |         |       
|                                                                               |                                | Commercial, financial and agricultural               |                                                             |         | 10,612             |         |                  |         | 4,758                  |         |            |         | 19,869 |         |            |         | 33,443 |        
|                                                                               |                                | Real estate:                                         |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |         |        |        
|                                                                               |                                |                                                      | Commercial                                                  |         |                    | 931     |                  |         |                        | 1,568   |            |         |        | 1,054   |            |         |        | 1,634   |  
|                                                                               |                                |                                                      | Residential                                                 |         |                    | 226     |                  |         |                        | 315     |            |         |        | 596     |            |         |        | 709     |  
|                                                                               |                                | Consumer                                             |                                                             |         | 13,809             |         |                  |         | 6,096                  |         |            |         | 29,112 |         |            |         | 18,971 |        
|                                                                               |                                | Lease financing                                      |                                                             |         | 7,014              |         |                  |         | 11,244                 |         |            |         | 13,097 |         |            |         | 17,277 |        
|                                                                               |                                | Foreign                                              |                                                             |         | 518                |         |                  |         | 393                    |         |            |         | 1,359  |         |            |         | 868    |        
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               |                                |                                                      | Total loans and leases charged off                          |         |                    | 33,110  |                  |         |                        | 24,374  |            |         |        | 65,087  |            |         |        | 72,902  |  
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|Recoveries on loans and leases previously charged off:                         |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               |                                | Commercial, financial and agricultural               |                                                             |         | 4,429              |         |                  |         | 776                    |         |            |         | 20,861 |         |            |         | 3,500  |        
|                                                                               |                                | Real estate:                                         |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |         |        |        
|                                                                               |                                |                                                      | Commercial                                                  |         |                    | 111     |                  |         |                        | 116     |            |         |        | 202     |            |         |        | 246     |  
|                                                                               |                                |                                                      | Construction                                                |         |                    | 30      |                  |         |                        | 34      |            |         |        | 64      |            |         |        | 254     |  
|                                                                               |                                |                                                      | Residential                                                 |         |                    | 312     |                  |         |                        | 214     |            |         |        | 608     |            |         |        | 416     |  
|                                                                               |                                | Consumer                                             |                                                             |         | 3,164              |         |                  |         | 1,950                  |         |            |         | 5,911  |         |            |         | 4,141  |        
|                                                                               |                                | Lease financing                                      |                                                             |         | 1,451              |         |                  |         | 2,535                  |         |            |         | 2,994  |         |            |         | 3,787  |        
|                                                                               |                                | Foreign                                              |                                                             |         | 222                |         |                  |         | 116                    |         |            |         | 334    |         |            |         | 267    |        
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               |                                |                                                      | Total recoveries on loans and leases previously
charged off |         |                    | 9,719   |                  |         |                        | 5,741   |            |         |        | 30,974  |            |         |        | 12,611  |  
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               |                                |                                                      | Net charge-offs                                             |         |                    | (23,391 | )                |         |                        | (18,633 | )          |         |        | (34,113 | )          |         |        | (60,291 | )
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               | Provision for credit losses    |                                                      |                                                             | 18,860  |                    |         |                  | 22,902  |                        |         |            | 41,550  |        |         |            | 42,909  |       
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               | Balance at end of period       |                                                      | $                                                           | 391,518 |                    |         | $                | 387,272 |                        |         | $          | 391,518 |        |         | $          | 387,272 |       
|                                                                               |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|Net loans and leases charged off to average loans and leases                   |                                |                                                      | 0.38                                                        | %(1)    |                    |         | 0.31             | %(1)    |                        |         | 0.28       | %(1)    |        |         | 0.59       | %(1)   
|Net loans and leases charged off to allowance for credit
losses                |                                |                                                      | 23.96                                                       | %(1)    |                    |         | 19.30            | %(1)    |                        |         | 17.57      | %(1)    |        |         | 31.39      | %(1)   
|Allowance for credit losses to total loans and leases (end
of period)          |                                |                                                      | 1.57                                                        | %       |                    |         | 1.61             | %       |                        |         | 1.57       | %       |        |         | 1.61       | %      
|Allowance for credit losses to nonperforming loans and
leases (end of period): |                                |                                                      |                                                             |         |                    |         |                  |         |                        |         |            |         |        |         |            |        
|                                                                               |                                | Excluding 90 days past due accruing loans and leases |                                                             |         | 2.30               | x       |                  |         | 1.69                   | x       |            |         | 2.30   | x       |            |         | 1.69   | x      
|                                                                               |                                | Including 90 days past due accruing
loans and leases |                                                             |         | 2.05               | x       |                  |         | 1.51                   | x       |            |         | 2.05   | x       |            |         | 1.51   | x      



(1) Annualized.

The allowance for credit losses for the first six months of 2003 was $391.5
million, an increase of $4.2 million, or 1.1%, compared to the same period in
2002. The provision for credit losses is based upon our judgment as to the
adequacy of the allowance for credit losses to absorb probable losses inherent
in the portfolio as of the balance sheet date. The Company uses a systematic
methodology to determine the adequacy of the Allowance and related provision
for credit losses to be reported for financial statement purposes. The
determination of the adequacy of the Allowance is ultimately one of judgment,
which includes consideration of many factors, including, among other things,
the amount of problem and potential problem loans and leases, net charge-off
experience, changes in the composition of the loan and lease portfolio by type
and location of loans and leases and in overall loan and lease risk profile and
quality, general economic factors and the fair value of collateral.

32



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

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



| |  | Setting Underwriting and Grading Standards.Our loan grading system
utilizes ten different principal risk categories where 1 is no risk
and 10 is loss. Risk parameters are established so that the cost of
credit risk is an integral part of the pricing and evaluation of credit
decisions and the setting of portfolio targets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Diversification.We actively manage our credit portfolio to avoid
excessive concentration by obligor, risk grade, industry, product and
geographic location. As part of this process, we also monitor changes in
risk correlation among concentration categories. In addition, we seek to
reduce our exposure to concentrations by actively participating portions
of our commercial and commercial real estate loans to other banks.                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Risk Mitigation.Over the past few years, we have reduced our
exposure to higher-risk areas such as real estate-construction (which
accounted for only 3.6% of total loans and leases at June 30, 2003), as
well as Hawaiian commercial real estate and agricultural loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | Reduced Participation in Syndicated National Credits. We are in the
process of exiting from the syndicated national credit and media finance
areas. At June 30, 2003, the ratio of nonperforming shared national
credits and media finance loans to total shared national credits and
media finance loans outstanding was 6.8%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Emphasis on High Quality Consumer Lending.Consumer loans represent
our single largest category of loans and leases. We focus our consumer
lending activities on loan grades with what we believe are predictable
loss rates. As a result, we are able to use formula-based approaches to
calculate appropriate reserve levels that reflect historical experience.
We generally do not participate in subprime lending activities. We also
seek to reduce our exposures where feasible by obtaining third-party
insurance or similar protections. For example, in our vehicle lease
portfolio (which represents approximately 56.8% of our lease financing
portfolio and 14.7% of our combined lease financing and consumer loans
at June 30, 2003), we obtain third-party insurance for the estimated
residual value of the leased vehicle.

Net charge-offs were $34.1 million for the six months ended June 30, 2003, a
decrease of $26.2 million, or 43.4%, from the same period in 2002. Charge-offs
were higher in the six months ended June 30, 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 in
the first quarter, as discussed in note 2.

For the six months ended June 30, 2003, recoveries increased by $18.4 million,
or 145.6%, 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 six months ended June 30, 2003 were 0.3% of average
loans and leases (annualized) compared to 0.6% (annualized) for the same period
in 2002.

The Allowance increased to 2.3 times nonperforming loans and leases (excluding
90 days or more past due accruing loans and leases) at June 30, 2003 from 1.69
times at June 30, 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 June 30, 2003. However, changes in prevailing
economic conditions in our markets could result in changes in the level of
nonperforming assets and charge-offs in the future and, accordingly, changes in
the Allowance. We will continue to closely monitor economic developments and
make necessary adjustments to the Allowance accordingly.

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##### Table of Contents



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




DEPOSITS

Deposits are the largest component of our total liabilities and account for a
significant portion of total interest expense. At June 30, 2003, total deposits
were $25.0 billion, an increase of 1.9% from December 31, 2002, and an increase
of 3.8% over June 30, 2002. The increase was primarily due to the growth in
our customer deposit base and various deposit product programs that we
initiated.

During the 12-month period from July 1, 2002 to June 30, 2003, the benchmark
federal funds rate was decreased by 50 basis points contributing to lower
interest rates on deposits.




LIQUIDITY MANAGEMENT

Liquidity refers to our ability to provide sufficient short- and long-term cash
flows to fund operations and to meet obligations and commitments, including
depositor withdrawals and debt service, on a timely basis at reasonable costs.
We achieve our liquidity objectives with both assets and liabilities. We obtain
short-term asset-based liquidity through our investment securities portfolio
and short-term investments that can be readily converted to cash. These liquid
assets consist of cash and due from banks, interest-bearing deposits in other
banks, federal funds sold, securities purchased under agreements to resell and
investment securities. Such assets represented 19.3% of total assets at June
30, 2003, compared to 17.8% 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 June 30, 2003 were $24.3 billion, compared to $22.3
billion for the year ended December 31, 2002. Average total deposits funded
69.7% of average total assets for the six months ended June 30, 2003 and 71.0%
for the year ended December 31, 2002.

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




CAPITAL

Stockholders equity increased to $4,088 million at June 30, 2003 from $3,867
million at December 31, 2002, an increase of $221 million, or 5.7%.
Stockholders equity at June 30, 2003 increased as compared to June 30, 2002 by
$288 million, or 7.6%. The increase between June 30, 2003 and December 31, 2002
was primarily due to net income earned by the Company during the six-month
period. The increase between June 30, 2003 and June 30, 2002 was primarily due
to net income earned during the twelve month period and unrealized gains on
investment securities and cash flow hedge derivatives 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, recognized in
the fourth quarter of 2002, was recorded as a decrease in the surplus
category of the Companys stockholders equity.

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

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

|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  |  |       |  
|------------------------------- | ------- | ---------------- |  | ------ | --------- | ----------------- |  | ---------- | ----- | ------ |  | ----------- | --------- | ----------------- |  |  | ---- | - |  | ------------ | --------- |  |  |  | ----- | -
|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  | To Be Well  
|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  | Capitalized 
|                                |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  | Under Prompt
|                                |         |                  |  |        |           |                   |  |            |       |        |  | For Capital |           | Corrective Action
|                                |         |                  |  | Actual |           | Adequacy Purposes |  | Provisions
|                                |         |                  |  |        |           |                   |  |           
|(dollars in thousands)          |         | Amount           |  | Ratio  |           | Amount            |  | Ratio      |       | Amount |  | Ratio      
|                                |         |                  |  |        |           |                   |  |            |       |        |  |            
|Tier 1 Capital to Risk-Weighted |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  | 
|                                | Assets: |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  |  |      
|                                |         | Bank of the West |  | $      | 2,303,280 |                   |  |            | 10.28 | %      |  | $           | 895,987   |                   |  |  | 4.00 | % |  | $            | 1,343,980 |  |  |  | 6.00  | %
|                                |         | First Hawaiian   |  |        | 792,570   |                   |  |            | 12.19 |        |  |             | 260,100   |                   |  |  | 4.00 |   |  |              | 390,149   |  |  |  | 6.00  |  
|Total Capital to Risk-Weighted  |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  | 
|                                | Assets: |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  |  |      
|                                |         | Bank of the West |  | $      | 2,809,073 |                   |  |            | 12.54 | %      |  | $           | 1,791,974 |                   |  |  | 8.00 | % |  | $            | 2,239,967 |  |  |  | 10.00 | %
|                                |         | First Hawaiian   |  |        | 948,868   |                   |  |            | 14.59 |        |  |             | 520,199   |                   |  |  | 8.00 |   |  |              | 650,249   |  |  |  | 10.00 |  
|Tier 1 Capital to Average       |         |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  | 
|                                | Assets: |                  |  |        |           |                   |  |            |       |        |  |             |           |                   |  |  |      |   |  |              |           |  |  |  |      
|                                |         | Bank of the West |  | $      | 2,303,280 |                   |  |            | 9.51  | %      |  | $           | 968,665   |                   |  |  | 4.00 | % |  | $            | 1,210,831 |  |  |  | 5.00  | %
|                                |         | First Hawaiian   |  |        | 792,570   |                   |  |            | 9.69  |        |  |             | 327,059   |                   |  |  | 4.00 |   |  |              | 408,824   |  |  |  | 5.00  |  

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

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

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BancWest Corporation and Subsidiaries
QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK




Item 3. Quantitative and Qualitative Disclosures About Market Risk

INTEREST RATE RISK MEASUREMENT AND MANAGEMENT

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

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

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

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

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

|                      |  |      |         |     |  |     |         |      |  |       |         |    |  |   |         |  |  |   |         |   
|--------------------- |  | ---- | ------- | --- |  | --- | ------- | ---- |  | ----- | ------- | -- |  | - | ------- |  |  | - | ------- | --
|(dollars in millions) |  | + 3% |         | +2% |  | +1% |         | Flat |  | -0.5%
|                      |  |      |         |     |  |     |         |      |  |      
|July 1, 2003          |  |      |         |     |  |     |         |      |  |       |         |    |  |   |         |  |  |   |         |   
|Net interest income   |  | $    | 1,277.9 |     |  | $   | 1,279.7 |      |  | $     | 1,277.1 |    |  | $ | 1,278.7 |  |  | $ | 1,264.3 |   
|Difference from flat  |  |      | (0.8    | )   |  |     | 1.0     |      |  |       | (1.6    | )  |  |   |        |  |  |   | (14.4   | ) 
|% variance            |  |      | (0.1    | )%  |  |     | 0.1     | %    |  |       | (0.1    | )% |  |   |        |  |  |   | (1.1    | )%
|January 1, 2003       |  |      |         |     |  |     |         |      |  |       |         |    |  |   |         |  |  |   |         |   
|Net interest income   |  | $    | 1,308.2 |     |  | $   | 1,303.3 |      |  | $     | 1,294.3 |    |  | $ | 1,280.6 |  |  |   | N/A     |   
|Difference from flat  |  |      | 27.6    |     |  |     | 22.7    |      |  |       | 13.7    |    |  |   |        |  |  |   | N/A     |   
|% variance            |  |      | 2.2     | %   |  |     | 1.8     | %    |  |       | 1.1     | %  |  |   |        |  |  |   | N/A     |   

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

Significant Assumptions Utilized And Inherent Limitations

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

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

rates, expectations of future interest rates, availability of refinancing,
economic benefit to borrower, financial viability of borrower, etc.).

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

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##### Table of Contents



BancWest Corporation and Subsidiaries
CONTROLS AND PROCEDURES




Item 4. Controls and Procedures

As of the end of the period covered by the filing date of this report, the
Company carried out an evaluation, under the supervision and with the
participation of the Companys management, including the Companys chairman and
chief executive officer and its chief financial officer, of the effectiveness
of the design and operation of the Companys disclosure controls and procedures
pursuant to Exchange Act Rule 13a-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

|                        |  |                                                                                                                                                                                                               
|----------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.8                    |  | Amendment No. 2 to BancWest Corporation Supplemental Executive
Retirement Plan, effective November 12, 2002.*                                                                                                 
|                        |  |                                                                                                                                                                                                               
|                        |  | *Management contract or compensatory plan or arrangement.                                                                                                                                                     
|                        |  |                                                                                                                                                                                                               
|12                      |  | Statement regarding computation of ratios.                                                                                                                                                                    
|                        |  |                                                                                                                                                                                                               
|31                      |  | Certifications                                                                                                                                                                                                
|                        |  |                                                                                                                                                                                                               
|(b) Reports on Form 8-K |  | On April 4, 2003, the registrant filed a Report on Form 8-K that provided
information under Items 7 and 9 concerning the Companys revised
financial results for the year and quarter ended December 31, 2002.
|                        |  |                                                                                                                                                                                                               
|                        |  | On April 17, 2003, the registrant filed a
Report on Form 8-K that provided information under Items 7 and 9 concerning the Companys
financial results for the quarter ended March 31, 2003.                   

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SIGNATURE

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

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

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EXHIBIT INDEX

|            |      |         |  |                                                                                                              |  |                                                           |  |  |  | 
|----------- | ---- | ------- |  | ------------------------------------------------------------------------------------------------------------ |  | --------------------------------------------------------- |  |  |  | 
|Exhibit No. |      | Exhibit |  |                                                                                                              |  |                                                          
|            |      |         |  |                                                                                                              |  |                                                          
|            | 10.8 |         |  | Amendment No. 2 to BancWest Corporation Supplemental
Executive Retirement Plan, effective November 1, 2002.*
|            |      |         |  |                                                                                                              |  |                                                          
|            |      |         |  |                                                                                                              |  | *Management contract or compensatory plan or arrangement.
|            |      |         |  |                                                                                                              |  |                                                          
|            | 12   |         |  | Statement regarding computation of ratios.                                                                  
|            |      |         |  |                                                                                                              |  |                                                          
|            | 31   |         |  | Certifications                                                                                              

40