A Wall Street analyst has cut his 2009 earnings forecast for Bank of Hawaii, citing the weakening local economy and increase credit exposures.

But Morgan Stanley�s Ken Zerbe noted that the bank continues to have a strong capital and reserve position, high quality funding sources and minimal exposure to a construction downturn.
Zerbe lowered his estimate for Bank of Hawaii�s 2009 earnings from $2.51 per share to $2.33 in a report today.
�We continue to view BOH as a well-run, conservative bank that has been largely isolated from many of the Mainland credit problems, at least up until recently,� Zerbe wrote.
�Following our meeting with management, we expect the pace of credit deterioration to increase, including potentially large increase in charge-offs during 2Q09.�