Ohana Pacific Bank’s earnings rose 2 percent in the third quarter due to strong loan growth and an improved margin between what it brings in from loans and what it pays depositors.

The state’s smallest bank by assets recorded its 20th consecutive profitable quarter in earning $299,000 compared with $293,000 in the year-earlier period.

Loans jumped 7.9 percent to $85.6 million from $79.3 million while its net interest margin — the spread between loans and deposits — grew to 3.37 percent from 3.22 percent in the third quarter of 2014.

“Overall loan production continues to be active with an increasing trend, especially when taking into consideration the $6 million increase in total loans from this point last year,” Ohana Pacific President and CEO James Hong said Friday.

The bank’s net interest income, thanks to the improving margin, increased 2.4 percent to $900,000 from $879,000. Noninterest income, which includes service charges and fees, fell 11 percent to $65,000 from $73,000 due to a decrease in overdraft fees.

Deposits edged up 1.3 percent to $102.9 million from $101.6 million while assets rose 1.9 percent to $118.9 million from $116.6 million.

The bank, which has its headquarters at 1357 Kapiolani Blvd. — a block from Ala Moana Center — also has an in-store branch that opened in December 2013 at Palama Super Market in Kalihi. Ohana Pacific caters primarily to the Korean community and small and midsize businesses.

Following its opening in June 2006, Ohana Pacific had five years of losses before turning around its operations following the recession.

Ohana Pacific’s stock, which trades over the counter under the ticker OHPB, last closed at $5.75 on Oct. 13. The bank announced its earnings after the market closed.