Pacific Century Financial Corporation Reports Second Quarter Earnings.HONOLULU--(BUSINESS WIRE)--July 16, 1997--Pacific Century Financial Corporation (NYSE NYSE See: New York Stock Exchange :BOH BOH Bournemouth (UK) Airport Identifier BOH Bank of Hawaii BOH Board of Health BOH Back Of House BOH Board of Housing (Montana Dept of Commerce) BOH Badge of Honor BOH Bridge Of Hope BOH Bag of Holding ), formerly known as Bancorp Hawaii Hawaii, island, United States Hawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. , Inc., reported second quarter earnings of $35.6 million, up 2.9 percent from the same period last year and similar to the $35.5 million reported at first quarter 1997. Earnings per share for the second quarter were $ 0.89 compared to $0.84 for the second quarter of 1996, an increase of 6.0 percent. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. return on average assets was 1.04 percent and return on average equity was 13.37 percent. Earnings for the first six months were $71.1 million, compared to $67.3 million for the first half of 1996, a 5.6 percent increase. Year-to-date earnings per share of $1.77 were 8.6 percent higher than the $1.63 reported for the first six months of 1996. Pacific Century's total assets at the end of June June: see month. 1997 were $14.2 billion, an increase of 3.5 percent from $13.7 billion at June 30, 1996. Deposits and repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. ended the quarter at $11.1 billion, up from $10.1 billion on the same date a year earlier. Net loans grew to $8.7 billion at June 30, 1997, 5.4 percent above last year's second quarter level of $8.2 billion and 3.0 percent above the first quarter 1997 level of $8.4 billion. At quarter-end, non-performing assets (NPAs), excluding loans 90-plus days past due totaled $93.6 million or 1.04 percent of total loans. This compares to $84.0 million or 0.98 percent of total loans for the same period last year. On June 27, shareholders of CU Bancorp overwhelmingly approved the merger with Pacific Century Financial Corporation. Approximately 2.3 million shares of Pacific Century Financial Corporation common stock will be issued to CU Bancorp shareholders in conjunction with the merger. The acquisition was completed on July July: see month. 3, 1997. Also, Pacific Century's board of directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the discretionary repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of a similar number of shares of its common stock in open market transactions. "California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). United Bank (CUB cub the newborn of a number of animal species as diverse as lion, fox and bear. ) will provide a platform from which we will be able to leverage our already-strong presence in Asia and throughout the Pacific region," Johnson said. "CUB is an excellent match for us in terms of its service orientation and market focus, and we are pleased to welcome the management and staff of California United Bank to Pacific Century Financial Corporation." CUB, located in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , has assets of approximately $800 million and serves primarily middle market businesses and consumers in the greater Los Angeles area The Greater Los Angeles Area, or the Southland, is the agglomeration of urbanized area around the city of Los Angeles, California, United States. There are two "official" definitions—the Los Angeles metropolitan area consisting only of the Los Angeles and Orange . Pacific Century Financial Corporation continues to look for opportunities to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. and grow through acquisition. On June 19, Bank of Hawaii Bank of Hawaii, a subsidiary of Bank of Hawaii Corporation (NYSE: BOH), is a regional commercial bank headquartered in Honolulu, Hawaii. It is Hawaii's second oldest bank and its largest locally owned bank in that majority of the voting stockholders reside within the state. signed a non-binding letter of intent to acquire the interest of Paribas PARIBAS Banque de Paris et des Pays-Bas (French: Bank of Paris and the Netherlands - now BNP Paribas) Group in Banque Paribas Pacifique Pacifique (French for Pacific) may refer to:
Also during second quarter, Bank of Hawaii announced that it will begin offering secure Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the banking to customers this fall. The bank launched a demonstration site of its virtual bank, known as e-bankoh, on the Net at www.boh.com . Pacific Century Financial Corporation is a global bank holding company with more than 180 locations spanning nearly 12,000 miles from Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). to New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Pacific Century and its subsidiaries provide varied financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to businesses, governments and individuals in Hawaii, the Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). region and in selected markets on the U.S. Mainland. Pacific Century is the largest Hawaii-based financial organization, and its principal subsidiary, Bank of Hawaii, is the state's largest commercial bank. Other Pacific Century subsidiaries include: California United Bank, First Federal Savings and Loan Association Federal Savings and Loan Association An institution chartered by the federal government whose primary function is to collect savings deposits and to provide mortgage loans. of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. ; and Pacific Century Bank in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). . Bank of Hawaii International, Inc.'s Pacific subsidiaries include: Banque de Nouvelle Caledonie, Banque de Tahiti Tahiti (tähē`tē), island (2002 pop. 169.674), South Pacific, in the Windward group of the Society Islands, French Polynesia. The capital is Papeete. , Banque d'Hawaii (Vanuatu Vanuatu (vän'wät  `), formerly New Hebrides (hĕb`rĭdēz), officially Republic of Vanuatu, independent republic (2005 est. pop. ) Ltd., and Bank of Hawaii (PNG (Portable Network Graphics) A bitmapped graphics file format endorsed by the World Wide Web Consortium. It is expected to eventually replace the GIF format, because there are lingering legal problems with GIFs. ) Ltd. and National
Bank of Solomon Islands National Bank of Solomon Islands (NBSI) has the largest branch (8) and agency (8) network in the Islands. Although the Bank overall is profitable, the branches and agencies outside Honiara, the capital, are running at a loss. , Ltd. -0-
Pacific Century Financial Corporation and subsidiaries
Highlights (Unaudited)
(in thousands of dollars except per share amounts)
Earnings Highlights and Performance Ratios
Percentage
1997 1996 Change
----------- ----------- ----------
Three Months Ended June 30
Net Income $ 35,606 $ 34,613 2.9%
Earnings Per Common Share
and Common Share Equivalents 0.89 0.84 6.0%
Cash Dividends 11,794 11,450
Six Months Ended June 30
Net Income $71,087 $67,323 5.6%
Earnings Per Common Share
and Common Share Equivalents 1.77 1.63 8.6%
Cash Dividends 23,719 22,992
Return on Average Assets 1.04% 1.04%
Return on Average Equity 13.37% 12.70%
Average Spread on Earning Assets 4.05% 3.89%
Statement of Condition Highlights and Performance Ratios
June 30 June 30 Percentage
1997 1996 Change
----------- ----------- ----------
Total Assets $14,168,746 $13,690,154 3.5%
Total Deposits and Securities
Sold Under Agreements to
Repurchase 11,075,504 10,118,728 9.5%
Net Loans 8,653,000 8,208,552 5.4%
Total Shareholders' Equity 1,082,169 1,049,900 3.1%
Book Value Per Common Share $27.49 $25.71
Loss Reserve / Loans and
Leases Outstanding 1.90% 1.95%
Average Equity / Average Assets 7.75% 8.20%
High Low
----------- ----------
Common Stock Price Range
1996 $44.00 $33.13
1997- First Quarter $46.38 $41.13
Second Quarter $47.88 $40.63
Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Condition
(Unaudited)
(in thousands of dollars)
June 30 Dec. 31 June 30
1997 1996 1996
----------- ----------- -----------
Assets
Interest-Bearing Deposits $ 562,215 $ 635,519 $ 638,204
Investment Securities - Held
to Maturity
(Market Value of $1,281,545,
$1,261,146 and $1,288,816
respectively) 1,279,349 1,258,756 1,296,708
Investment Securities -
Available for Sale 2,411,882 2,372,897 2,201,538
Securities Purchased Under
Agreements to Resell 1,600 -- --
Funds Sold 85,758 141,920 218,628
Loans 9,018,809 8,699,286 8,549,043
Unearned Income (197,967) (183,586) (177,225)
Reserve for Possible Loan
Losses (167,842) (167,795) (163,266)
Net Loans 8,653,000 8,347,905 8,208,552
Total Earning Assets 12,993,804 12,756,997 12,563,630
Cash and Non-Interest
Bearing Deposits 484,239 581,221 482,067
Premises and Equipment 272,080 273,122 271,762
Customers' Acceptance Liability 19,856 21,178 21,759
Accrued Interest Receivable 90,151 88,074 85,910
Other Real Estate 11,632 10,711 9,571
Intangibles, including Goodwill 112,734 96,456 96,971
Trading Securities 2,157 1,687 1,192
Other Assets 182,093 179,721 157,292
Total Assets $14,168,746 $14,009,167 $13,690,154
Liabilities
Domestic Deposits
Demand - Non-Interest Bearing $ 1,358,368 $ 1,435,091 $ 1,295,882
- Interest-Bearing 1,814,164 1,724,105 1,612,901
Savings 822,200 866,453 931,286
Time 2,738,374 2,571,569 2,517,056
Foreign Deposits
Demand - Non-Interest Bearing 329,482 553,274 299,697
Time Due to Banks 736,212 804,818 769,256
Other Savings and Time 1,129,991 728,769 996,743
Total Deposits 8,928,791 8,684,079 8,422,821
Securities Sold Under
Agreements to Repurchase 2,146,713 2,075,571 1,695,907
Funds Purchased 471,956 599,994 600,232
Short-Term Borrowings 478,134 293,257 499,580
Bank's Acceptances Outstanding 19,856 21,178 21,759
Accrued Pension Costs 19,440 17,309 23,451
Accrued Interest Payable 56,684 69,545 70,629
Accrued Taxes Payable 155,672 154,984 145,427
Minority Interest 7,466 9,307 17,057
Other Liabilities 100,232 85,678 86,166
Long-Term Debt 701,633 932,143 1,057,225
Total Liabilities 13,086,577 12,943,045 12,640,254
Shareholders' Equity
Common Stock ($2 par value),
authorized 100,000,000 shares;
outstanding, June 1997
-- 39,363,421;
December 1996 -- 39,959,234;
June 1996 -- 40,830,130; 78,727 79,918 81,660
Surplus 160,375 186,391 221,897
Unrealized Valuation Adjustments (7,836) (3,722) (15,760)
Retained Earnings 850,903 803,535 762,103
Total Shareholders' Equity 1,082,169 1,066,122 1,049,900
Total Liabilities and
Shareholders' Equity $14,168,746 $14,009,167 $13,690,154
Pacific Century Financial Corporation and subsidiaries
Consolidated Statements of Income
(Unaudited)
(in thousands of dollars except per share amounts)
3 Months 3 Months 6 Months 6 Months
Ended Ended Ended Ended
June 30 June 30 June 30 June 30
1996 1997 1996 1997
-------- -------- -------- --------
Interest Income
Interest on Loans $172,647 $166,410 $338,972 $322,848
Loan Fees 7,366 8,283 16,736 16,577
Income on Lease Financing 8,948 6,640 17,324 9,674
Interest and Dividends on
Investment Securities
Taxable 20,916 14,545 40,705 29,161
Non-taxable 286 298 578 609
Income on Investment
Securities Available
for Sale 38,546 36,481 77,547 74,050
Interest on Deposits 9,470 10,842 19,139 20,654
Interest on Security Resale
Agreements 22 -- 85 --
Interest on Funds Sold 736 916 1,624 2,078
Total Interest Income 258,937 244,415 512,710 475,651
Interest Expense
Interest on Deposits 80,560 70,360 157,457 133,362
Interest on Security
Repurchase Agreements 28,399 24,582 55,032 49,925
Interest on Funds Purchased 5,493 7,352 11,793 14,718
Interest on Short-Term
Borrowings 4,960 5,328 8,863 11,472
Interest on Long-Term Debt 11,128 15,587 22,529 31,982
Total Interest Expense 130,540 123,209 255,674 241,459
Net Interest Income 128,397 121,206 257,036 234,192
Provision for Possible
Loan Losses 7,286 4,163 12,374 8,587
Net Interest Income After
Provision for Possible
Loan Losses 121,111 117,043 244,662 225,605
Non-Interest Income
Trust Income 12,742 11,814 26,109 24,718
Service Charges on Deposit
Accounts 6,518 6,793 13,198 12,784
Fees, Exchange, and Other
Service Charges 17,538 14,023 32,193 26,552
Other Operating Income 7,913 8,264 14,449 13,928
Investment Securities
Gains (Losses) 1,549 67 2,012 (62)
Total Non-Interest Income 46,260 40,961 87,961 77,920
Non-Interest Expense
Salaries 40,047 40,899 81,525 77,519
Pensions and Other
Employee Benefits 12,426 12,071 27,510 25,480
Net Occupancy Expense
of Premises 11,218 8,662 21,555 19,444
Net Equipment Expense 9,661 8,797 18,693 16,554
Other Operating Expense 38,610 32,857 72,024 61,711
Minority Interest 392 501 712 657
Total Non-Interest Expense 112,354 103,787 222,019 201,365
Income Before Income Taxes 55,017 54,217 110,604 102,160
Provision for Income Taxes 19,411 19,604 39,517 34,837
Net Income $ 35,606 $ 34,613 $ 71,087 $ 67,323
Earnings Per Common Share
and Common Share Equivalents $0.89 $0.84 $1.77 $1.63
Average Common Shares and
Common Share Equivalents
Outstanding 39,885,681 41,276,498 40,057,959 41,411,266
CONTACT: Pacific Century Financial Corp., Honolulu Honolulu (hŏn'əl `l, hōnō–), city (1990 pop.
Linda Chinn, 808/537-8658 (media inquiries) or pager: 808/363-5383 Lance Tanaka, 808/537-8351 (media inquiries) Sharlene Bliss, 808/537-8037 (investor inquiries) |
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