Ohana Pacific Bank nearly doubled its earnings in the July-to-September period and said it plans to open its second branch next month in Kalihi.
The state’s smallest bank, which posted its 12th straight profitable quarter, is planning a soft opening Nov. 18 at its new 323-square-foot branch at 1070 N. King St. It will be an in-store branch within Palama Super Market. The grand opening is set for Dec. 14.
Ohana, which opened in Honolulu in June 2006 to cater primarily to the Korean community and small and midsize businesses, is on pace for its third straight profitable year after five consecutive years of losses. The bank has been gradually expanding its niche market.
Net income rose 99.4 percent to $289,195 last quarter from $145,005 in the year-earlier period.
"The increase in earnings can be attributed to a combination of 1) a tax credit, 2) improved net interest income as OPB’s loan and deposit portfolios have shown significant increases since September 2012, and 3) not needing to allocate any provisions for loan losses this year due to improvement in credit quality opposed to incurring those expenses in 2012," Ohana President and CEO James Hong said Friday.
Ohana, whose main branch is at 1357 Kapiolani Blvd. — a block from Ala Moana Center — had 22 full-time-equivalent employees at the end of the quarter. It said its new branch will have three employees, of which two positions will be filled through new hires or will transfer from its existing headquarters.
The bank’s total assets rose 14.4 percent last quarter to $106.1 million from $92.7 million a year ago. Total deposits increased 15.6 percent to $91.8 million from $79.4 million while total loans increased 7.1 percent to $73.3 million from $68.4 million.
Its net interest margin — the spread between the bank’s lending rates and deposit rates — slipped to 3.49 percent from 3.60 percent. Net interest income rose 4.3 percent to $855,316 from $820,231.
Noninterest income, which includes service charges and fees, rose 3.7 percent to $77,776 from $75,020.
Nonperforming assets — loans overdue by 90 days or more — fell to $669,695 from $1.6 million.
