Top two isle banks
post profit gains

Pacific Rim purchases
help Bancorp Hawaii to an 8.5%
profit gain

By Rick Daysog
Star-Bulletin

Bancorp Hawaii Inc.'s expansion in the Pacific rim paid off in the first quarter as the company reported an 8.5 percent earnings increase.

The state's largest financial institution and parent of Bank of Hawaii said it earned $35.5 million for the three months ending March 31, up from $32.7 million in the year-earlier period.

On a per-share basis, the company earned 88 cents for the most recent quarter, an 11.3 percent increase from 79 cents in the first quarter of 1996.

The results were slightly above Wall Street's expectations. Analysts surveyed by Zacks Investment Research had forecast 86 cents a share.

"Bancorp's growing and unique presence throughout the Pacific enables the company to participate in the vibrant economic activity occurring in this dynamic region," said Lawrence Johnson, the company's chairman and chief executive officer. He said Bancorp's recent acquisition of Banque de Tahiti and Banque de Nouvelle Caledonie helped its bottom line.

As part of its expansion, the bank holding company announced in February that it was buying California United Bank. The company also completed its purchase of Indosuez Niugini Bank Ltd. in Papua New Guinea in March, giving it a presence in all major Pacific Island nations. Also in March, Bancorp acquired four Arizona branches from Home Savings of America.

Bancorp said its South Pacific acquisitions increased its nonperforming assets. At the end of the quarter, the company said its nonperforming assets, excluding loans 90 days or more past due, was $87.6 million, or about 1 percent of all loans. That compares with $62.9 million worth of nonperforming assets, or .76 percent of all loans, in the year-earlier period.

Bancorp plans to change its name to the Pacific Century Financial Corp. pending shareholder approval next week.

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