Higher deposit insurance expenses and provisions for credit losses cut into Bank of Hawaii Corp.’s earnings in the second quarter, the company reported today.

The bank reported net income of $31.0 million, or 65 cents per share for the April-to-June period, down from $48.3 million, or $1 per share during same period a year earlier.
Results for the second quarter of 2009 included Federal Deposit Insurance Corp. expense of $9 million compared with $200,000 million in the second quarter of 2008. Second quarter 2009 results also included a provision for credit losses of $28.7 million compared to a provision for credit losses of $7.2 million in the same quarter last year.
The return on average assets for the second quarter of 2009 was 1.06 percent, compared to 1.85 percent during the same quarter last year. The return on average equity for the second quarter of 2009 was 14.49 percent compared to 24.82 percent for the second quarter of 2008.
“We continued to pursue our near-term strategies of maintaining strong liquidity, reserves, and capital during the second quarter of 2009,” said Allan Landon, BOH chairman and chief executive officer.
“Our profitability during the quarter was helped by increased net interest income. The company’s results included an industry-wide FDIC assessment and losses from the resolution of three significant credits. Bank of Hawaii has a strong balance sheet and is well prepared,” he said.