January 10, 2005

First Hawaiian Bank Receives $390,000 Grant From Federal Home Loan Bank To Aid Habitat For Humanity's Housing Efforts

Honolulu, Hawaii, January 10, 2005) -- First Hawaiian Bank has received a $390,000 grant from the Federal Home Loan Bank of Seattle to help Hawaii Habitat for Humanity construct 30 affordable single-family homes for first-time homebuyers.

The Affordable Housing Program grant was the only one made to Hawaii in this round of funding by the Seattle bank.

"There is a growing need for affordable housing in our islands, especially among Native Hawaiians. We're pleased to work with Habitat for Humanity to help families who otherwise wouldn't have a home or would live in substandard housing," said Don Horner, First Hawaiian Bank president and chief executive officer.

The grant will help Habitat for Humanity build 30 single-family homes for lower-income families - for example, a family of four with income below $32,850. The homes will be built on sites throughout the state over a two-year period. Half will be built on land leased by the state Department of Hawaiian Home Lands for native Hawaiian applicants; the other units will be built on lands in Eleele, Kauai, donated to the Kauai Habitat for Humanity by a private donor.

Besides the grant obtained by First Hawaiian and the donated land, other funding for the $1.95-million project is being provided by the Case Foundation, the Office of Hawaiian Affairs (pending approval), Habitat fundraising and in-kind donations from volunteers. Homes will be constructed by Habitat volunteers in conjunction with the homeowners themselves. Each family is required to put in at least 500 hours of "sweat equity," receive homebuyer education from Habitat for Humanity and then purchase the home with a zero-interest loan.

"We are pleased to have the support of both the Federal Home loan Bank of Seattle and First Hawaiian Bank in making this project a reality. Hawaii Habitat for Humanity is planning to enlarge its involvement in meeting the needs of the lower income families. Future efforts will include forming partnerships with some of the major players in the homebuilding industry to ramp up to meet this need. This is the first of many projects we plan to do statewide until we can eliminate substandard housing in Hawaii," said Mike Sessions, president of Hawaii Habitat for Humanity.

This is the second grant received by First Hawaiian Bank and Habitat for Humanity this year to build affordable housing for Native Hawaiians. The bank and Habitat for Humanity Maui were awarded a $70,000 grant from the Federal Home Loan Bank of Seattle last summer for homes for Native Hawaiians on Maui.

About First Hawaiian Bank

First Hawaiian Bank ($10.1 billion assets) was founded in 1858 and is Hawaii's oldest and largest bank. It has 56 branches in Hawaii, three on Guam and two on Saipan. It is a subsidiary of BancWest Corporation, the largest Hawaii-based bank holding company, with assets of $50 billion.

About Hawaii Habitat for Humanity

Hawaii Habitat for Humanity is the state organization representing the 7 affiliates in Hawaii. The affiliates are located on Kauai, Honolulu, Leeward Oahu, Molokai, Maui, Hilo and Kailua-Kona. The organization is mostly run by volunteers who work at the jobsites and staff our boards and committees. Please contact our office at 538-7676 if you would like to be a volunteer in either capacity.

About Federal Home Loan Bank of Seattle

One of 12 Federal Home Loan Banks in the nation, the Federal Home Loan Bank of Seattle expands housing and economic opportunities by providing funding and other banking services essential to community-based financial institutions. The bank contributes 10 percent of its annual net income to support affordable housing development through the Affordable Housing Program (AHP). AHP grants are awarded twice a year on a competitive basis. With $53 billion in assets, the Federal Home Loan Bank of Seattle provides funding and other financial services that allow over 370 financial institution members to make more housing and business loans at more competitive rates. To apply for an Affordable Housing Program grant, visit http://www.fhlbsea.com.