Posted at 1:29 p.m., Monday, January 28, 2002
BOH owner meets forecasts
By Frank Cho
Advertiser Staff Writer
Pacific Century Financial Corp. said today its fourth-quarter earnings were down 19.2 percent from the same period a year ago but in line with lowered Wall Street expectations as federal regulators ended their increased oversight of the financial services company.
Hawai'i's second-largest financial services company in terms of assets said net income for the quarter that ended on Dec. 31 fell to $26.3 million, or 34 per diluted share, from $32.6 million, or 41 cents, in the same year-earlier period.
Included in the bank holding company's fourth-quarter earnings, however, were $18.5 million in adjustments and charges related to the company's restructuring and a $3.4 million loss on venture investments.
On an annual basis, Pacific Century, the parent company of Bank of Hawaii, reported earning $117.8 million, or $1.46 per diluted share, in 2001. That was up 3.6 percent from $113.7 million, or $1.42 cents, in the previous year.
It was Chairman and Chief Executive Officer Mike O'Neill's first complete year of financial results since taking the job in November 2000 and announcing a major divestiture of most of the company's overseas assets.
"I am pleased that we were able to successfully complete the sale of our non-strategic assets," O'Neill said in a statement today. "Also gratifying and significant was the lifting of the Memorandum of Understanding by our regulators."
The bank entered the MOU in the third quarter of 2000 after regulators became concerned about asset quality problems at the bank.
The company also said its board approved a $300 million share buyback program, a move expected to help its stock price. Pacific Century had already completed a stock buyback program for $70 million and its about $125 million through a second buyback for $200 million.
The company's earnings met analysts' average estimate of 35 cents a share. Pacific Century's stock rose to $26.14, up 49 cents. Trading totaled 296,900.
"I think have done a lot to reduce rise in the balance sheet going forward," said Jim Bradshaw, a banking analyst with D.A. Davidson & Co. in Portland, Ore.
Reach Frank Cho at 525-8088, or at fcho@honoluluadvertiser.com.
