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EXHIBIT 99.1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
PACIFIC CENTURY FINANCIAL CORPORATION
EXHIBIT TO CURRENT REPORT ON
FORM 8-K DATED December 20, 2000
Commission File Number 1-6887
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[LETTERHEAD]
SUSAN KORCHAK
AMERICAN EXPRESS COMPANY
TELEPHONE: (212) 640-4953
AMERICAN EXPRESS TO ACQUIRE
BANK OF HAWAII'S CREDIT CARD PORTFOLIO
CARD MARKETING AGREEMENT ESTABLISHED
NEW YORK/HONOLULU - DEC. 20, 2000 - American Express Company and Pacific Century
Financial Corporation (PCFC) today announced that they have signed a definitive
agreement for American Express Centurion Bank to acquire the credit card
portfolio of Bank of Hawaii, a PCFC subsidiary.
The Bank of Hawaii portfolio includes 148,000 consumer and business
accounts, with receivables of approximately $226 million.
Under terms of the agreement, American Express will establish a card
marketing program with Bank of Hawaii, whereby American Express will issue and
market Bank of Hawaii-branded American Express Cards to the bank's customer
base. The cards will be marketed through Bank of Hawaii in Hawaii and the West
Pacific and Pacific Century Bank in California, as well as through more than 500
ATMs and via direct mail.
The transfer of the credit card portfolio is expected to be completed
in the first or second quarter of 2001, subject to certain government approvals.
Cardholders will enjoy many of the same card benefits, with additional
features planned for the future. Pricing terms and conditions will remain the
same at conversion. As with all credit cards, cardholders will have the option
of paying their balances in full or in monthly installments.
Michael E. O'Neill, Chairman and CEO of Pacific Century Financial
Corporation and Bank of Hawaii, said, "American Express has an unparalleled
reputation in the credit card industry and is recognized for its commitment to
quality customer service. The strength and innovation of American Express brings
the power of a world-class brand into the hands of our customers."
"We're pleased to be working with American Express on a marketing
agreement that will allow us to stay close to our cardholders," said Alton
Kuioka, Bank of Hawaii Vice Chair. "Every effort is being made to ensure that
the conversion process is seamless to customers, and we don't expect they will
be materially impacted by the change."
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American Express and Pacific Century Financial Corporation
Kenneth I. Chenault, President and Chief Operating Officer of American
Express, said, "We are delighted to have reached this strategic agreement with
Bank of Hawaii. As part of our growth strategy we are moving aggressively to
acquire high quality credit card portfolios from banks. Bank of Hawaii's strong
presence in the marketplace and long-tenured customer base make this portfolio
an excellent match for American Express."
"This is the first agreement we have reached with a bank to acquire a
card portfolio and to market to their bank customers," said Alfred F. Kelly Jr.,
Group President, U.S. Consumer and Small Business Services at American Express.
"We hope to establish similar deals with other U.S. banks in the future."
Bank of Hawaii-branded American Express Cards will be accepted on the
American Express merchant network worldwide. American Express is the largest
card issuer in the world and has broad acceptance among merchants, with a new
merchant added every two minutes. In the U.S., the American Express merchant
network now accommodates more than 95 percent of Cardmembers' general purpose
plastic spending.
This is the second portfolio acquisition for American Express in recent
months. In August, the company announced plans to acquire the ShopRite credit
card portfolio, and to issue a cobranded ShopRite card. That transaction is
expected to close early in the first quarter of 2001.
Bank of Hawaii card customers will receive information on the card
transfer shortly. They will receive a new Bank of Hawaii-branded American
Express Card, which they will be able to activate at the time of the transfer.
PCFC will receive a premium for the credit card portfolio, which it
believes meets or exceeds pricing levels represented in recent comparable
transactions.
Pacific Century Financial Corporation is a $13.9 billion regional
financial services company with locations throughout the Pacific region.
Headquartered in Honolulu, Hawaii, Pacific Century and its subsidiaries provide
varied financial services to businesses, governments and consumers in four
principal markets: Hawaii and the West Pacific, South Pacific, Asia and selected
markets on the U.S. Mainland. Pacific Century's principal subsidiary, Bank of
Hawaii, is the largest commercial bank in the state of Hawaii.
American Express Centurion Bank is a subsidiary of American Express
Company, a diversified worldwide travel, financial and network services company
founded in 1850. American Express is a leader in charge and credit cards,
Travelers Cheques, travel, financial planning, investment products, insurance
and international banking. For more information about the company, visit
www.americanexpress.com.
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