Bank of Hawai'i sells corp. trust unit

Advertiser Staff and News Services

Bank of Hawaii has sold its corporate trust business to Bank of New York Co.

The acquisition, whose terms were not disclosed, would involve the transfer of about 80 bond trust and agency agreements representing $3 billion of debt to BNY Western Trust Co.

George Fillion, Bankoh executive vice president, said the sale would allow the bank to focus on its core business lines of investment management, institutional and personal trust services, retail and commercial banking.

The deal is expected to close early next year.

The sale isn't expected to have a "material" effect on Bank of Hawaii's earnings, said spokesman Stafford Kiguchi.

Shares of Bank of New York fell 20 cents to $31.54 in New York Stock Exchange composite trading. Bank of Hawaii shares rose 15 cents to $41.33 on the same exchange.

Also yesterday, the Bank of Hawaii reported that Allan Landon, who was named president of the bank this week, will receive up to 75,000 shares of bank stock, currently worth $3.1 million, over the next five years.

Landon will get 10,000 shares a year for four years, starting March 31, 2005, as long as he stays with the bank. He gets an additional 35,000 shares if he meets certain performance measures within five years.