Bank of Hawaii Corp. improved profits slightly in the second quarter while spending more to buy back shares of stock and increasing provisions for loan and lease losses as Hawai'i's economy slows.

The bank reported net income of $48.3 million in the April-to-June period, up 1.2 percent from $47.7 million in the same quarter last year.

Earnings equated to $1 per diluted share of stock, which was up 5.3 percent or 5 cents from 95 cents in the same comparable period as the company reduced the number of shares outstanding by buying back stock.

"It was a good quarter and we are positioned pretty well," said Allan Landon, chairman and chief executive officer of the state's No. 2 bank. "We are maintaining our disciplined approach to credit and balance sheet management as the Hawai'i economy slows."

The results exceeded Wall Street's expectations. Six analysts polled by Zacks Investment Research had forecast earnings of 91 cents to 95 cents per share for the second quarter.

Shares of Bank of Hawaii on the New York Stock Exchange closed yesterday at $48.15, up $1.58 from Friday and up from a 52-week low of $39.34 on July 15.

The bank said interest income from its core business of making consumer and business loans rose by $8.3 million to $107.4 million. Noninterest income — which includes fees earned through financial services, leasing and other nonlending operations — rose by $2.5 million to $60.5 million.

Expenses during the quarter included $11.4 million spent repurchasing shares of company stock under a long-term plan. Bankoh also said charge-offs totaled $4.7 million in the quarter, up from $3.4 million a year ago.

The company increased its allowance for loan and lease losses to $102.5 million June 30, compared with $91 million a year earlier. The bolstering of reserves in part was made as higher oil prices increase risk in the bank's portfolio of aircraft leases with passenger airlines.

Accruing loans and leases overdue by 90 days or more totaled $4.2 million as of June 30, up from $1.4 million a year earlier. Nonperforming assets totaled $6.7 million at the end of the quarter, up from $6.3 million a year earlier.

The bank held $7.9 billion in deposits as of June 30, down $410 million from $8.31 billion a year earlier. The decrease was in part due to the release of about $53 million to a developer of a Hawai'i condominium/time-share project receiving escrow payments from buyers.

Total bank assets were $10.37 billion as of June 30, down $351 million from $10.72 billion a year earlier.

Bankoh's board of directors declared a dividend of 44 cents per share payable on Sept. 15 to shareholders of record at the close of business Aug. 29.